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

 

Taxing Multinationals: EU Ruling Sours Apple

Shares of Apple slid, down 0.9 percent as of 3.08pm in New York, after the European Commission ruled that Ireland granted the company undue tax benefits of up to 13 billion euros (US$14.5 billion)—"illegal aid” under EU rules that the commission says Ireland now must recover from Apple. More>>

ALSO:

NZX Review: Best Practice Code Recommends Code Of Ethics

NZX, the sharemarket operator, is seeking feedback on proposed changes to its corporate governance best practice code including a published code of ethics, rules about share trading and continuous disclosure, and more transparency over board appointments and chief executive pay. More>>

ALSO:

Auditors:

Signs Of Life? SETI On Russian Space(?) Signal

A star system 94 light-years away is in the spotlight as a possible candidate for intelligent inhabitants, thanks to the discovery of a radio signal by a group of Russian astronomers... Could it be a transmission from a technically proficient society? At this point, we can only consider what is known so far. More>>

Post-Post: Brian Roche To Step Down As NZ Post CEO

Brian Roche will step down as chief executive of New Zealand Post in April 2017, having led the state-owned postal service's drive to adjust to shrinking mail volumes with a combination of cost cuts, asset sales, modernisation and expansion of new businesses. More>>

ALSO:

Company Results: Air NZ Rides The Tourism Boom With Record Full-Year Earnings

Air New Zealand has ridden the tourism boom and staved off increased competition to deliver the best full-year earnings in its 76-year history. More>>

ALSO:

New PGP: Sheep Milk Industry Gets $12.6M Crown Funding

The Sheep - Horizon Three programme aims to develop "a market driven, end-to-end value chain generating annual revenues of between $200 million and $700 million by 2030," according to a joint statement. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news