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


Strong Government finances and a strong economy

Strong Government finances and a strong economy

Responsible decision-making and a strong economy will deliver a forecast $3.7 billion surplus in 2018/19, up from $3.1 billion forecast in the current year, says Finance Minister Grant Robertson.

“The Treasury’s forecasts released today show that this Government is managing the books responsibly. This means we can inject much-needed investment into essential public services and pay down debt at a responsible rate,” says Grant Robertson.

“Budget 2018 sets out the first steps in our plan to transform the economy, our public services and how we work together to improve the lives of all New Zealanders.”

According to the Treasury forecasts presented in Budget 2018:
• Economic growth is expected to average about 3 per cent per year over the next five years.
• The unemployment rate is expected to drop to 4.1 per cent, which would be the lowest rate in 10 years.
• Real wages are expected to grow each year, with average annual earnings rising to $71,000 by June 2022.
• Inflation is expected to remain steady and stable at around 2 per cent.
• The operating balance before gains and losses (OBEGAL) is expected to continue to improve, reaching a surplus of $7.3 billion (2.1 per cent of GDP) in 2021/22, from $3.1 billion (1.1 per cent of GDP) forecast for the current year to June 2018.
• Net capital investment will total $41.8 billion in the years to 2021/22.
• Net core Crown debt is forecast to fall to 19.1 per cent of GDP in 2021/22.

“Our plan will ensure productive, sustainable and inclusive growth. Our job as a responsible Government is to look 30 years ahead – not just three. We are planning for what New Zealanders will need,” says Grant Robertson.

“Growth is expected to peak at 3.6 per cent in the December 2019 quarter as the Government’s policies bolster the economy, residential and business investment picks up, and consumption growth remains solid.

“Responsible management of the Government finances, and a strong economy, have given us the room to increase the operating and capital allowances at Budget 2018 and continue to meet the Budget Responsibility Rules.

“For Budget 2018, the operating allowance has been increased from $2.6 billion at the December 2017 Budget Policy Statement to $2.8 billion, and the capital allowance has been increased from $3.4 billion to $3.8 billion. Allowances for future Budgets have also increased, and are included in the Fiscal Strategy Report.

“These allowances give us the ability to make the investments needed to rebuild our critical public services and build a stronger economy through initiatives like the R&D incentive, the Provincial Growth Fund and the Green Investment Fund.

“Budget 2018 begins the transformation that will deliver New Zealanders an improved quality of life and better living standards for decades to come,” says Grant Robertson.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Joseph Cederwall: The End Of ‘Objectivity’ In Journalism

... and the dawn of something much better?
2019 looks like it might well be another really bad, terrible, not so good year for the traditional journalism model globally. Already in January three leading US digital outlets—BuzzFeed, the Huffington Post, and Vice announced layoffs that have left many accomplished journalists unemployed. Consolidation of journalism looks set to continue unabated as larger (sharky) media conglomerates swallow up smaller players globally. We also appear to be witnessing the death throes of the concept of ‘objective’ truth in journalism. However, perhaps that is not at all as bad as it sounds, and we are just finally waking up to the reality that it never really existed in the first place... More>>


Environment: Government To End Tenure Review

“Tenure review has resulted in parcels of land being added to the conservation estate, but it has also resulted in more intensive farming and subdivision on the 353,000 ha of land which has been freeholded. This contributed to major landscape change and loss of habitat for native plants and animals,” said Eugenie Sage. More>>


Bell Tolls: Big Changes, Grand Mergers Planned For Vocational Training

“At a time when we’re facing critical skill shortages, too many of our polytechnics and institutes of technology are going broke... More>>


Sallies' State Of The Nation: Progress Stalled In Reducing Inequality

The report shows a lack of tangible progress in key areas including record levels of household debt and a growing gap in educational achievement between poorer and more well off communities. More>>


Party Politics In Tax Morale Survey: SSC To Seek Answers From IRD

Minister of State Services Chris Hipkins has today asked the State Services Commissioner Peter Hughes to examine IRD’s reported inappropriate use of a public survey. More>>


Health: Prohibiting Smoking In Vehicles Carrying Children

Under the change, Police will be able to require people to stop smoking in their cars if children (under 18) are present. Police will also be able to use their discretion to give warnings, refer people to stop-smoking support services, or issue an infringement fee of $50... It is expected that this amendment will become law by the end of 2019. More>>


Waitangi Day: Nationwide Events Commemorate Treaty Signing

“From large-scale events attracting tens of thousands of people such as those at Hoani Waititi Marae in Auckland and the Porirua Waterfront, to smaller gatherings in areas as far flung as the Chatham Islands and to the significant commemorations at Waitangi, these events are an opportunity for us to reflect on the signing of the Treaty of Waitangi.” More>>





InfoPages News Channels