§ Bearing all this in mind, what should be the purposes of this year's Budget? The rise in personal consumption must be restrained, I would hope that as in 1960 increased saving would be an important part in this. Nevertheless, I am sure that the broad effect of the Budget must be counter-inflationary; there must be a larger surplus above-the-line than last year and a smaller overall deficit. All existing encouragements to investment must be maintained. Room must be left for increased exports. I must consider whether existing methods of regulating the economy can be improved upon. I must also consider whether any additional incentive to effort and initiative can be provided. Above all, in everything I do I must have in mind the maintenance of confidence in the £ sterling, both at home and abroad.