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Fiscal conditions should remain tight, with Osborne aiming to whittle down the underlying budget deficit, and ultimately return it to the black in 2018/19.
Fitch themselves say the government's 'continued policy commitment to reducing the underlying budget deficit' is one of the main reasons UK debt now has a 'stable' outlook.
This is not good; there's no good policy reason to be doing this, because the savings won't have any significant impact on the underlying budget issues.
Thanks to its ongoing stimulus spending, which it is not proposing to trim, Germany's underlying budget deficit is forecast to rise this year.
Under reconciliation, Democrats must adhere to the "Byrd rule," named for the senator, which dictates that every provision in a reconciliation bill must be directly related to the underlying budget.
Respectable estimates put the underlying budget deficit for next year, ignoring one-off measures, at 5% of GDP, way above the 3% ceiling set by the euro area's stability and growth pact.
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Italy and Belgium have high debt levels but more ample private savings, and their underlying budgets are closer to surplus.
Largely it takes this view because S&P believes the assumptions underlying the budget projections are overly optimistic and because many of the "zombie measures" carried over from the 2014-15 budget – which on paper make the budget deficit smaller – are unlikely to pass.
What is more important than the details is the principle underlying the budget plans.
And the underlying state budget is a political football every year".
America's underlying "structural" budget deficit is almost 7% of GDP.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com