But the outlook will be much less optimistic this year. The 2008 Budget has been prepared with the near certainty of a slowdown in prospect. Revenue growth rates will consequently slow. This was telegraphed pointedly in the minister not cutting the personal income tax rate. A one-point reduction had been expected by corporate leaders and economic forecasters, as a timely concession to boost either consumption or discretionary savings. Individual tax is projected to bring in just under $6 billion this year, comparable to the GST contribution. It is a quite sizeable amount in the operating budget. The Government clearly did not want to be locked into a position of having to justify raising the tax rate again if the revenue position gets tight. The alternative of 'only' a 20 per cent rebate with a $2,000 cap will disappoint hard-pressed taxpayers as being ungenerous. Yet they will acknowledge, if they think about it, that the treasury is being smart keeping its powder dry.

Aside from the package of concessions to SMEs and start-up ventures, again a continuing process, the seed funding for research and development is most commendable. This is of a piece with developing manpower in schools and tertiary institutions. But could the minister have been more yielding in giving financial support to the elderly and low-income earners? Growth dividends payable to all citizens is an equitable act meant to spread the largesse; anything less universal will surely bring grouses among the sandwich class. Granted, the GST offset package is only into its second year of a five-year relief run. In the circumstances off-budget provisioning should be considered for the indigent if economic conditions cloud over more heavily than anticipated.