English: National is focussed on achieving surplus
National is focussed on achieving surplus
The
Treasury’s latest economic forecasts, released today,
anticipate a deficit in the current financial year despite
sustained economic growth and more jobs being created.
The forecasts have swung from the pre-election update just three months ago which anticipated a $297 million surplus this year, to today’s figures suggesting a $572 million deficit. The difference illustrates just how difficult it is to forecast a small number in a $220 billion economy where things change quickly.
Despite today’s forecasts, I still believe a surplus this financial year is achievable - but we won’t take a “slash and burn” approach to do it. For six years this Government has maintained spending to support the most vulnerable New Zealanders and we’ll keep doing that.
Today’s update reinforces how important it is for us to maintain tight control over our own spending. That has helped us put a surplus within reach. Under National the deficit has shrunk significantly from a peak of $18.4 billion in 2010/11.
National’s careful economic management is also helping to deliver a sustained period of low interest rates and low inflation which is good for households, though they are two of the factors that are making it harder for the Government to achieve its revenue targets.
The economy continues to grow strongly, wages are growing more quickly than inflation and an additional 153,000 people are forecast to be in work by mid-2019.
You can read more about the half yearly update here.
Hon Bill English