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.


ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Arming Police: Frontline Police To Routinely Carry Tasers

"In making the decision, the Police executive has considered almost five years worth of 'use of force' data… It consistently shows that the Taser is one of the least injury-causing tactical options available when compared with other options, with a subject injury rate of just over one per cent for all deployments." More>>

ALSO:

Gordon Campbell: On D-Day For Dairy At The TPP

While New Zealand may feel flattered at being called “the Saudi Arabia of milk” it would be more accurate to regard us as the suicide bombers of free trade. More>>

ALSO:

Leaked Letter: Severe Restrictions on State Owned Enterprises

Even an SOE that exists to fulfil a public function neglected by the market or which is a natural monopoly would nevertheless be forced to act "on the basis of commercial considerations" and would be prohibited from discriminating in favour of local businesses in purchases and sales. Foreign companies would be given standing to sue SOEs in domestic courts for perceived departures from the strictures of the TPP... More>>

ALSO:

"Gutted" Safety Bill: Time To Listen To Workplace Victims’ Families

Labour has listened to the families of whose loved ones have been killed at work and calls on other political parties to back its proposals to make workplaces safer and prevent unnecessary deaths on the job. More>>

ALSO:

Regulators: Govt To ‘Crowd-Source’ Regulatory Advice

A wide-ranging set of reforms is to be implemented to shake up the way New Zealand government agencies develop, write and implement regulations. More>>

ALSO:

Board Appointments: Some Minister Appoint Less The 3 In 10 Women

“It’s 2015 not 1915: Ministers who appoint less than 3 in 10 women to their boards must do better, they have no excuse but to do better,” said Dr Blue. More>>

Gordon Campbell: On The 1990s Retro Proposals For Our Health System

As we learned yesterday, the reviews propose that the democratically elected representation on DHBs should be reduced, such that community wishes will be able to be over-ridden by political appointees. In today’s revelations, the reviews also propose a return to the destructive competitive health model of the 1990s. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news