In most advanced economies, improvements in fiscal balances in 2015 are expected to remain moderate.
Exceptions include Ireland and Portugal, both expected to continue adjustment efforts to reach headline deficits of 3 percent of GDP or less in 2015 and exit the excessive deficit procedure of the European Union(EU); and Australia, as the government is committed to return to budget surplus over the medium term.
In Austria, after the 2014 banking sector support ends,
the cyclically adjusted balance should improve by 1¼ percentage points. In Japan, the second stage of the consumption tax rate increase is planned for October
2015, which combined with expenditure measures, is expected to improve the cyclically adjusted balance by 1.2 percentage points of potential GDP.