Top Scoops

Book Reviews | Gordon Campbell | Scoop News | Wellington Scoop | Community Scoop | Search

 

NZ Treasury urges govt to avoid fiscal stimulus

NZ Treasury urges government to avoid fiscal stimulus

Dec. 4 – New Zealand’s government budget for the current fiscal year will provide fiscal stimulus equivalent to 2.8% of gross domestic product and the government needs to avoid further fueling the economy, according to the Treasury.

“The use of fiscal stimulus will be costly in the short term and may require savings later to avoid further deterioration in the medium-term fiscal outlook,” briefing papers to incoming Finance Minister Bill English say. “Our judgment is that a stimulus package is not required at this point.”

The briefing paper, dated Nov. 19, says policies announced by former Finance Minister Michael Cullen in the May budget such as tax cuts that started in October are already stimulating the economy. The National government plans additional tax cuts from April 1 and a ramp up of spending on infrastructure projects such as roads, schools and irrigation schemes.

The economy fell into recession in the first half of this year and combined with a global economic slump, spurred the central bank to make a record 1.5 percentage point cut to the official cash rate today. Governor Alan Bollard said he expects a modest revival in growth in 2009.

The Treasury paper’s recommendations include a cut to the top income tax rate over the medium term. New Zealand is heading into a period of wider fiscal deficits and increased government debt in the face of a weakening economy, the Treasury said.

(Businesswire.co.nz)

ENDS

© Scoop Media

 
 
 
Top Scoops Headlines

 


Keith Rankin: Our Neanderthal Ancestry

After my partner read Dan Salmon's novel Neands – written during lockdown in 2020 – I decided to renew my interest in our distant ancestry, in part with a concern that homo neanderthalensis has been unable to shake off, so far, its unflattering reputation in popular culture... More>>

Ian Powell: Rescuing Simpson From Simpson

(Originally published at The Democracy Project ) Will the health reforms proposed for the Labour Government make the system better or worse? Health commentator Ian Powell (formerly the Executive Director of the Association of Salaried Medical ... More>>

Missions To Mars: Mapping, Probing And Plundering The Red Planet

In the first month of 2020, Forbes was all excitement about fresh opportunities for plunder and conquest. Titled “2020: The Year We Will Conquer Mars”, the contribution by astrophysicist Paul M. Sutter was less interested in the physics than the conquest. ... More>>

Jennifer S. Hunt: Trump Evades Conviction Again As Republicans Opt For Self-Preservation

By Jennifer S. Hunt Lecturer in Security Studies, Australian National University Twice-impeached former US President Donald Trump has evaded conviction once more. On the fourth day of the impeachment trial, the Senate verdict is in . Voting guilty: ... More>>

Binoy Kampmark: Let The Investigation Begin: The International Criminal Court, Israel And The Palestinian Territories

International tribunals tend to be praised, in principle, by those they avoid investigating. Once interest shifts to those parties, such bodies become the subject of accusations: bias, politicisation, crude arbitrariness. The United States, whose legal and political ... More>>

The Conversation: How To Cut Emissions From Transport: Ban Fossil Fuel Cars, Electrify Transport And Get People Walking And Cycling

By Robert McLachlan Professor in Applied Mathematics, Massey University The Climate Change Commission’s draft advice on how to decarbonise New Zealand’s economy is refreshing, particularly as it calls on the government to start phasing out fossil ... More>>

 
 
 
 
 
 
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog