Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Budget 2011: English says Budget to show large deficit

Budget 2011: English says NZ Budget will show ‘very large deficit” including quake costs

May 10 (BusinessDesk) – Finance Minister Bill English says the Budget next week will confirm a ‘very large deficit’ including the immediate costs of rebuilding Christchurch after its two earthquakes.

“It’s essential that the Government gets its own finances in order as quickly as possible, so it can join households and businesses in lifting national savings and reducing New Zealand’s vulnerability to foreign lenders,” English said in a statement after the release of the Treasury’s financial statements for the first nine months of the year.

The Budget “will also confirm significant improvements in the fiscal position over the next few years, before we return to surplus and start repaying debt,” he said. “To achieve that, the Government has completed a careful and balanced review of its spending priorities, which we will outline in the Budget.”

The operating deficit before gains and losses was $10.2 billion for the nine months ended March 31. That included the Earthquake Commission’s $1.5 billion estimated share of the February quake costs but excluded the financial support package for policyholders of insurer AMI.

Next week’s Budget “will set a credible path back to budget surplus,” English said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Primary Sector Council Report: Vision To Unite The Primary Sector Launched

Agriculture Minister Damien O’Connor has welcomed the release of a bold new vision for the country’s vital food and fibre sector. More>>


Crown Accounts: Treasury HYEFU Sees Deficit Then Rising Surpluses

An operating balance before gains and losses deficit of $0.9 billion is forecast in the current year, before returning to a small surplus in 2020/21 which then grows to reach $5.9 billion (1.5% of GDP) in 2023/24. More>>


Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>


Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>