14 February 2007

Budget date announced

Finance Minister Michael Cullen will deliver his eighth budget on Thursday 17 May.

"Budget 2007 will reinforce the Labour-led government's strategy to transform the New Zealand economy so we can continue to create more opportunities for all families, young and old, and continue to strengthen our unique national identity.

"As I outlined in my first major speech of the year last week, our aim is to build a strong economy and a fair society where the benefits of growth are shared equitably across society.

"We have made tremendous progress. Thousands have been lifted out of poverty; 2.1 million people are in jobs. New Zealanders are healthier, wealthier and more secure.

"But economic transformation is an ongoing process and Budget 2007 will continue our efforts to provide long term solutions to the economic challenges we face. We want a strong, sustainable economy, underpinned by innovative, high value businesses.

"To that end, my eighth Budget will announce our decisions on the Business Tax Review, for implementation 1 April 2008. The package will reflect this government's pragmatic approach to putting the drivers of the economy on a more competitive footing.

"Budget 2007 will be forward looking and responsible. I am mindful that fiscal policy must continue to support monetary policy. Excessive fiscal loosening through large scale tax cuts as advocated by National or major new spending initiatives would be irresponsible at this stage of the economic cycle," Dr Cullen concluded.

ENDS

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