This article seeks to analyse the Budget 1997-98 within the broad framework of the role of the state in a changing economic environment The first part, dealing with short-term issues presents an analysis indicating that as the government reduces unnecessary regulation and permits the market to function by creating appropriate incentives, growth will occur. The second part, on long-term issues, shows that the long-term prospects for growth however are none too bright, in the absence of genuine meaningful state intervention. The neglect of the physical and social infrastructure is especially highlighted.
