Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Budget numbers support family assistance package

Budget numbers support family assistance package

A Future Directions package to assist low and middle income families will be the centrepiece of next year’s budget, Finance Minister Michael Cullen announced today.

“We indicated in Budget 2003 that we would move in this direction if the fiscal position permitted. The December Economic and Fiscal Update, which revises up sharply the surplus forecasts for the next two years, means that we can confirm that commitment in today’s Budget Policy Statement.

“The better fiscal outlook, with a structural increase in tax revenue, will allow us to spend a little more in our next three budgets than we flagged in Budget 2003 while still more than delivering on our fiscal objectives,” Dr Cullen said.

The DEFU has surpluses of $6.1 billion in 2003-04; $6.3 billion in 2004-05; $5.8 billion in 2005-06; $5.9 billion in 2006-07 and $6.2 billion in 2007-08. It has gross debt as a proportion of GDP falling from 28 per cent currently to 20.4 per over the forecast period.

“The debt track is well under the government’s 30 per cent of GDP target and raises the issue of whether the target should be lowered. There will be some discussion of this in Budget 2004,” Dr Cullen said.

The DEFU economic forecasts are for growth of 2.8 per cent in the next two years rising to 3.4 per cent in 2005-06, with unemployment remaining below 5 per cent across the forecast horizon.

“Despite the increased fiscal headroom, we will continue our cautious fiscal stance both as a buffer against future economic shocks and because, with the domestic economy running close to capacity, too great a spending stimulus could place undue pressure on monetary policy.

“Budget 2004 will commit $1 billion in new operating spending, above the $1.1 billion already either signalled or incorporated into baselines, in the first year. The total in subsequent years will rise to $3.3 billion. Much of the increase will be through Future Directions, funding for which will begin next year.

“Health, education and the Growth and Innovation Framework will receive spending increases of a similar size to last year’s budget.

“The budget will also allocate money to building capacity in the public sector and will support a significant capital investment programme while meeting our commitments to the New Zealand Superannuation Fund. “The government puts a high value on consistency and prudence and on governing for the long-term.

“Budget 2004 will reflect that, blending a prudent fiscal strategy with continued steady progress on our policy objectives and a suite of measures under the Future Directions umbrella to improve the living standards and life prospects of low and middle income New Zealanders,” Dr Cullen said.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Decision Day: Peters Chooses Labour

Winston Peters says he will form a Government in coalition with Labour and the Greens giving confidence and supply.

Peters said he had been offered the position of Deputy Prime Minister and a number of other ministerial posts would go to his colleagues

He said economic and monetary policy changes were needed to face a coming economic downturn.>>>More

Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election