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


Careful spending in order as surplus within sight

Careful spending in order as surplus within sight

The Government’s latest monthly financial accounts confirm that achieving a surplus in 2014/15 requires a determined focus on careful spending and responsible economic management, Finance Minister Bill English says.

“Just as the Government’s careful fiscal stewardship has taken New Zealand within sight of fiscal surplus in the coming year, the last thing we need is a return to big government spending programmes that would crowd out private investment and put that surplus in jeopardy,” he says.

“New Zealanders should be wary of such approaches from political parties as we head towards the election in September.”

The Crown accounts for the 11 months to May 31 show core Crown expenses were $36 million below the latest forecast, but that was more than offset by core Crown tax revenue coming in $459 million below forecast.

This left the operating deficit before gains and losses at $1.1 billion – $332 million larger than forecast.

Despite the economy growing by 3.8 per cent in the year to March 31, GST, corporate tax and other direct taxes were below forecast for the 11 months – driven in part by lower-than-expected consumer spending.

“These latest figures cover the first 11 months of the 2013/14 fiscal year and we remain fully committed to achieving a surplus in 2014/15,” Mr English says.

“New Zealand has a good economic story to tell with rising wages, growing employment and record exports. But it’s clear that New Zealanders – both households and businesses - are still being careful with their spending and the Government must continue to do the same.

“While tax revenue was lower than forecast, it was $2.5 billion higher than at the same time last year and these figures are within the normal variation for forecasts.”

Meanwhile, the continued strength of equity markets saw higher than forecast gains on financial instruments. But these were largely offset by actuarial losses on the ACC liability, due to changes in short term discount rates.

Overall, the operating balance surplus was $165 million lower than forecast, at $4.3 billion.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Housing Issues: Homelessness On The Horizon For Baby Boomers

Baby Boomers who have held down jobs and contributed to the well-being of New Zealand through their taxes may yet become homeless in late middle age or early retirement without urgent Government action, says The Salvation Army. More>>


Treasury Has Doubts On Christchurch Rebuild And... Auditor-General Follows Up On EQC

Despite the improvements made, EQC could still learn better from complaints and improve its customer focus and interactions... Although the programme is nearing completion, EQC needs to provide the best service possible for the home owners whose homes are still to be repaired. More>>


Man Who Banned 'Into The River' Out The Door: Appointments To The Film And Literature Board Of Review

Internal Affairs Minister Peter Dunne has announced seven appointments to the Film and Literature Board of Review... “The new members of the Board... will provide a strong mix of skills and experience to help the Board carry out its functions, while representing a cross-section of society.” More>>


Climate Marches: New Zealanders March For Solutions Not Pollution

Ahead of the UN Climate Summit in Paris more than 15,000 New Zealanders have taken part in the Peoples Climate march in Auckland, kicking off the largest climate mobilisation the world has ever seen... More>>


Labour: Little Announces New Shadow Cabinet

“Labour had an impressive intake of fresh faces after last year’s election and newest MPs have now had a year to show what they’re made of. This reshuffle rewards hard work and continues my drive to renew our Caucus line up." More>>


Because Reasons: Someone Reckons David Seymour Is Politician Of The Year

Trans Tasman's 11th annual Roll Call has thrown a curve ball this year, ignoring the likes of John Key, Bill English, and Winston Peters to pick its politician of the year from the ranks of the new generation. More>>


Whaling: NZ Deeply Disappointed By Japan's Decision

“New Zealand is strongly opposed to whaling in the Southern Ocean. We call on Japan to take heed of the 2014 International Court of Justice decision and international scientific advice concerning their whaling activities.” More>>


Relevant Consents Gained: Government Unveils RMA Reform Package

The government has formally hauled down the flag on its attempts to alter the balance of environmental and economic priorities in the Resource Management Act, unveiling a 180-page Resource Legislation Amendment Bill containing reforms that have been largely endorsed by most political parties. More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news