Budget generous, certain to stimulate growth

The Budget will be good for business, the Employers and Manufacturers Association says.

"The extra funds freed up for families to spend will help stimulate the economy and boost business," said Kim Campbell, EMA's chief executive.

"The cuts to ACC, and health related costs will add to their disposable incomes available for spending.

"Right now we seem a world away from Australia and their Budget.

"If anything ours is slightly over generous. We wouldn't want the surplus spent before it has been banked.

"But its pleasing to see the government reaching the goal it made several years ago by returning its accounts to a surplus.

"We are also pleased with the additional funding for exporting delivered to NZTE as previously announced, and the additional commitment to science and innovation.

"We're particularly gratified to see the new measures allowing the write off of losses made by start-up companies before they become profitable.

"Likewise, for allowing the expensing of R&D that does not result in marketable products and services.

"These long overdue measures on their own could well result in a highly desirable pick up in private sector investment in R&D and innovation. The government is to be applauded for introducing them.

"We commend too the extra funding for Auckland transport to be delivered by way of interest free loans. This will allow an earlier start and faster progress on vital land transport projects."

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