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 Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>

 
 

MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>

ALSO:

Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>

ALSO:

Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>

ALSO:

Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>

ALSO:

Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages