Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Budget 2014 - PwC New Zealand report card

Subject: Budget 2014

Name: The New Zealand Government

PwC New Zealand report card


General comments

Despite the improving economic climate, this is still going to be a challenging Budget for the New Zealand Government. But, we don’t expect the Minister of Finance to be unhappy, as the Budget will be set in the best economic climate of the last six years. Here we list the key modules we believe will make up the Government’s 2014 Budget announcement.


Subject remarks

Surplus

We’ve had very clear signals from the Minister of Finance that the Government will be aiming for a surplus and start a programme of debt repayment. We are $1 billion behind in tax revenues, and this shortfall to get to surplus will have to be made up from spending compromises.

Tax cuts

There might be $1 billion of extra spending. But one thing’s for sure – no tax cuts now, or in the near future.

Exports

We’ll see a very clear focus on increasing New Zealand’s exports: expanding trade agreements and removing barriers for New Zealand businesses to go to market.

Economic growth

We’ve come out of the Global Financial Crisis strongly, and economic growth is forecast to continue at about 2.5 to 3% for the next four years. This is a big opportunity to capture the gains that have been made and drive reform to cement recovery and keep it going. On the economic front, we predict a real laser focus on reforming regulatory regimes that might impede business growth.

Risks

While we’re in a very good position and hopefully New Zealand will be ready to rise, it’s not guaranteed. We face headwinds internationally from our major trading partners and there are some domestic concerns starting to emerge about rising interest rates and inflation.

Critical points for our
Assessment

• The Canterbury rebuild – will the region get additional funding?

• SOE sales – given share sales have raised less capital than forecast, how will this affect the Government’s programme over the next four years?

• Government’s KPIs* – will they be achieved? How much money will be re-prioritised?

• Interest rates will go up – New Zealand’s Reserve Bank has signalled reasonably steep rises over the next year or two. How will Government spending impact monetary policy?

*KPIs = Key Performance Indicators

For our full assessment and reaction to Budget 2014, please visit pwc.co.nz/budget


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news