Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Budget 2016 continues the pattern of fiscal prudence

26 May 2016

Budget 2016 continues the pattern of fiscal prudence while leaving long-term problems largely unaddressed

Deloitte CEO Thomas Pippos says that Budget 2016 offers the continuation of the pattern of growing surplus’s in the mid-term (up to $5 billion by 2019), a current plan to reduce debt, the reality of relatively moderate headline tax rates that may be eased even further – particularly over the next term.

“Quite a different position to what many of our trading partners find themselves in, most notably Australia,” says Mr Pippos.

“However, largely due to an ageing population, our long-term outlook is far from rosy. If the current pattern of revenue and spending continues, net debt potentially appears to increase from the current 25% of GDP to over 200% over the next four decades, while noting that the nearer term outlook canvassed in Budget 2016 has net debt projected to fall to 19.3% in 2021,” he adds.

“While Budget 2016 may continue to starve others of the political oxygen necessary to thrive, it unfortunately leaves many of our long-term challenges still largely unaddressed. The road to 2020 looks quite different to that going out another 40 years.”

Deloitte’s recent State of the State (www.deloitte.com/nz/stateofthestate) report focuses on the importance of looking at the quality, rather than quantity, of government expenditure, particularly as it impacts on the long-term. It takes a closer look at social investment, which is a preventative approach rather than reacting to problems after they’ve occurred.

Mr Pippos says that while an additional $652 million has been allocated to social investment in Budget 2016, it is still a long way from being the mainstream way of working for the wider public sector.

“In part this is because such a long-term view doesn’t sit easily with a political cycle or environment that places a huge emphasis on the here and now,” concludes Mr Pippos.

Deloitte’s team of experts look at today’s budget announcement, particularly how it relates to the long-term success of New Zealand. For our full Budget 2016 commentary and analysis go towww.deloitte.com/nz/2016budget.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election