No Budget Blow-Out, Despite Superannuation
“Today’s Budget Policy Statement is a very conservative statement,” according to New Zealand First Leader and Finance Spokesperson, Rt Hon Winston Peters. “We are glad to see that the Government has chosen to not go into deficit, and has still managed to meet some of its long-term economic strategies,” said Mr Peters.
“We are concerned that New Zealand has still not developed the key fundamental of a sound export policy.
“Despite the protests of those now against a superannuation fund (despite ACT campaigning for one in 1997) the gross and net debts have not increased significantly from last year’s projections. The net debt as a percentage of GDP has actually decreased from projections since this time last year.
“The drop in GDP growth projections is more worrying, however. Last year GDP was projected to grow by 3.3% and now it is 1.3%. That is a major drop even though the dairy industry is expanding rapidly on the back of a low New Zealand dollar.
“This drop in GDP growth has not been adequately understood and is sure to affect the Government’s operating balance in the next fiscal year, further limiting Mr Cullen’s options,” concluded Mr Peters.