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

 

Budget 2015 brings home reality of a hard economic grind

Budget 2015 brings home reality of a hard economic grind

Finance Minister Bill English announced his seventh budget to the nation today with few surprises and little fanfare. Deloitte CEO Thomas Pippos says Budget 2015, the first budget in the Government’s third term, is evolutionary rather than revolutionary, and brings home the reality of a hard economic grind.

“Evolutionary budgets are not a bad thing. They provide a degree of stability and predictability that business likes,” says Mr Pippos.

“They also recognise that there is no magic wand or initiatives that deliver instantaneous gratification; which should always be viewed with a healthy degree of scientism.”

Mr Pippos says that the focus on missing the surplus largely amounts to political noise and misses a more important point.

“It’s the speed and direction of travel for our economy over a wider period of time that is more important to consider. The return to surplus is no more than a marker on this journey – a score part way through the game when two very large sets of numbers come together to create a surplus or deficit,” says Mr Pippos.

Budget 2015 continues to reference both a surplus target and debt reduction while allowing for targeted spending increases within the same broad base low rate tax settings.

“Despite New Zealand’s relatively positive economic outlook it is wise to recognise that the country, and the Government, does not totally control its own economic destiny. Issues in Europe and Asia, and more closely in Australia, can still materially shape our economic future, as can commodity prices and our exchange rate, none of which we really control.

“On the domestic front, the issues of child poverty and the different speeds of the economy between Auckland and the rest of the country (the economic activity associated with the Canterbury rebuild notwithstanding) present the Government with significant challenges as they attempt to line up their fourth term.

“While Budget 2015 recognises these problems, and starts to develop some solutions, there are no easy answers,” concludes Mr Pippos.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Talking Up The Economy: NZD Gains On PM's Mistaken GDP Comment

Her comments were downplayed by her chief press secretary who said she was referring the government's June year financial statements and had "made a mistake." More>>

ALSO:

Oxfam: Drug Companies Cheating Countries Out Of Billions In Tax

Oxfam’s analysis suggests these four companies are shifting profits out of countries where they do their business and into tax havens that charge little or no tax. More>>

Off The Lam: 50 Lambs Reported Lost, Found

The sheep had escaped and merged with another farmer’s flock. The combined flocks had been moved to another property before the farmer realised the missing sheep were included. More>>

Rotting Poles: Commission To File Proceedings Against Aurora Energy

The Commerce Commission has decided to file court proceedings against Dunedin-based electricity lines company Aurora Energy for breaching its regulated quality standards in 2016 and 2017. More>>

ALSO:

Gordon Campbell: On The Rising Cost Of Petrol

As petrol gets more and more expensive, Auckland motorists have several things to blame for it – the slumping value of the Kiwi dollar, Donald Trump’s sanctions on Iranian oil, hurricanes in the Caribbean… But it is simpler and feels better to lay all the blame on the regional fuel tax. More>>

ALSO: