In the $40 billion state budget approved Friday, spending is to rise by 12% over last year, with revenues forecast to grow also by 12%. Spending growth was curbed by cutting utility subsidies and by hiking the minimum wage by 12% in 2019, versus 16% in 2018. The budget is based on forecasts of 3% GDP growth in 2019 and 7.4% year end inflation, versus 9.9% this year. Dragon Capital writes: “The key budget parameters look relatively conservative, with revenue and spending growth expected to slow from this year’s 16% and 18%, respectively.”
In the $40 billion state budget approved Friday, spending is to rise by 12% over last year, with revenues forecast to grow also by 12%.
