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

 

BUDGET 2016: NZDMO trims $8 bln from bond programme

BUDGET 2016: NZDMO trims $8 bln from bond programme

By Paul McBeth

May 26 (BusinessDesk) - The New Zealand Debt Management Office will cut $8 billion from its issuance programme through to 2020 as the government looks set to reduce debt.

The office is slicing $2 billion from each of the next four years, due to a “lower funding requirement,” the DMO said in a statement. The office will raise $8 billion in the current financial year, falling to $7 billion in each of the subsequent four.

That will see $36 billion of new issuance over the five-year period and $31.4 billion repaid, leaving net bond issuance of $4.6 billion.

Finance Minister Bill English today unveiled his eight budget, and slashed $400 million a year from the 2017 budget new spending allowance to help repay debt.

“We turned an $18.4 billion deficit in 2011 into a $414 million surplus last year, but a tight rein on spending is still required to start repaying debt,” English said in a statement.

Net debt is seen being $62.3 billion, or 24.9 percent of gross domestic product, at June this year, lower than the $65.9 billion, or 26.9 percent of GDP, forecast six months ago. After peaking in 2018, net debt is forecast to fall back to $62.3 billion, or 20.8 percent of GDP, in 2020, down from last December’s forecast of 24 percent of GDP.

(BusinessDesk)

© 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: