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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Scoop 3.0: How You Can Help Scoop’s Evolution

We have big plans for 2018 as we look to expand our public interest journalism coverage, upgrade our publishing infrastructure and offer even more valuable business tools to commercial users of Scoop. More>>

Statistics: Butter At Record $5.67/Block; High Vegetable Prices

Rising dairy prices have pushed food prices up 2.7 percent in the year to October 2017, Stats NZ said today. This followed a 3.0 percent increase in the year to September 2017. More>>


Science: New Research Finds Herbicides Cause Antibiotic Resistance

New University of Canterbury research confirms that the active ingredients of the commonly used herbicides, RoundUp, Kamba and 2,4-D (glyphosate, dicamba and 2,4-D, respectively), each alone cause antibiotic resistance at concentrations well below label application rates. More>>


CO2 And Water: Fonterra's Environment Plans

Federated Farmers support Fonterra’s bold push to get to zero emissions of CO2 on the manufacturing side of the Co-operative, both in New Zealand and across its global network. More>>


Fisheries: Decision To Delay Monitoring ‘Fatally Flawed’

Conservation group representatives say a decision by the new Minister of Fisheries, Stuart Nash, to delay implementation of camera monitoring of fishing efforts in New Zealand is ‘fatally flawed’. More>>


Kaikōura Quakes: One Year On

State Highway One and the railway were blocked by damage and slips and the Inland Road suffered significant damage. Farms, homes and businesses suffered building and land damage. Power and internet went down, drinking water systems, sewage systems and local roads were all badly affected... More>>