Countries that increase the structural budget balance the most have experienced the slowest growth. Here is the scatter plot for the 2008-2012 period.
Average Cumulative growth of real GDP (in domestic currency) versus change in structural budget balance, 2008-2012. 0.10 = 10%. Sample: Advanced economies ex.-East Asia, ex.-Israel, by IMF definition. Source: IMF, WEO (April 2013) database [h/t Idiosyncratic Risk via kebko for noting error in vertical axis description].
The slope coefficient from an OLS regression is -1.2, with a t-statistic of -3.4, using White heteroskedasticity consistent standard errors. The adjusted R2 is 0.41. Dropping Greece leaves intact a negative, statistically significant relationship.
Update, 9/19 8:50AM: Reader Steven Kopits asks why plot changes over the 2008-12 period, when most consolidation occurred over the 2010-12. I was following what many other studies used as a sample period, but gee, if I do what he suggests, the negative relationship becomes more negative. Thanks to Mr. Kopits for suggesting that I check this correlation.