Expansionary fiscal contraction
George Osborne didn't say these words today: they came from his opposite number Ed Balls during a conversation with his urologist. But Osborne did use the expression a year ago – and what he meant was that his cuts would, counterintuitively, create economic growth. By revisiting the phrase, Balls highlighted how wrong Osborne had been. The Office for Budget Responsibility has revised its growth forecast for 2012 to 0.1% – down drastically from 0.8%.
Fiscally neutral
An obscure term from the S&M scene, fiscal neutrality refers to a sexual position in which … Sorry. Wrong dictionary. A fiscally neutral budget is one that balances an increase in government spending with an increase in government revenues – usually from taxation.
Rolling forward an outline framework into 2017-18
This is wonk for "the cuts will continue for an extra year".
Off-balance sheet
When you make your bed, an off-balance sheet is one that isn't properly tucked in, meaning that you wake up in the middle of the night with your cheek grazing the mattress, and a fast-emerging rash. In economic terms, though, it refers to debts owed by Britain that aren't included in a list of the country's liabilities. In his autumn statement, Osborne said that liabilities such as Northern Rock and Bradford Bingley – two banks bailed out by the government, and previously considered "off balance sheet" – were now being listed on the government's books. It's a way of excusing the country's poor economic prospects.
Fiscal mandate
Osborne promised to balance Britain's books by the next election – a promise known as the fiscal mandate.
Automatic stabilisers
Not a new kind of cycling paraphernalia, but government policies that have a "stabilising" effect on the economy. For instance, during a recession, lower taxes and higher unemployment benefits help consumers to keep spending, and so maintain growth.
Cyclically adjusted budget
Imagine a bicycle. Now predict how it will age over five years, without taking into account any accidents you might have while cycling it. Now swap the bicycle for the national economy, and the road accidents for economic ones. Capisce? Thought not! (It's basically a prediction of how the budget will pan out over a certain period, assuming that taxes and consumer spending remain constant.)
