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The first budget from the new government seems to have received the thumbs up from most experts and business leaders.

The promises made during last year’s election have been delivered, with what’s been called a ‘mild tightening’ of government expenditure. The unexpectedly high surplus has been ‘banked’, government spending cut, and three new funds created to invest in health, infrastructure and education.

In a move that’s bound to please the Reserve Bank – and help to keep interest rates on hold – those funds won’t be used this year, avoiding further pressure on inflation.

It’s been described by some as a ‘solid start’: enough to keep the Reserve Bank on hold for the next few months.

The question now is about wages: if they go up, the pressure’s back on the Reserve Bank to increase rates to slow the economy down.

All in all, Tuesday’s budget looks like a good start. But the experts agree, more has to be done in the future if inflation, and rates, are to be kept in check.