Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Remaining on track to Budget surplus in 2014/15

Hon Bill English
Minister of Finance

24 May 2012

Remaining on track to Budget surplus in 2014/15

Budget 2012 sets out a programme of balanced measures to ensure the Government remains on track to return to surplus in 2014/15, Finance Minister Bill English says.

“New Zealand will then be one of the few developed countries not running deficits and increasing debt.

“Getting back to surplus is one of the most important contributions the Government can make to increasing genuine national savings and building a more competitive economy.

“It will reduce upwards pressure on interest and exchange rates. It will stop our debt rising and allow us to start reducing it.

“A significant surplus will give us choices about public services we don’t have while we’re running deficits,” Mr English says.

Budget forecasts show a fiscal surplus of $197 million in 2014/15, despite a $1.2 billion deterioration in the fiscal outlook for that year since the Budget Policy Statement in February.

“Since receiving preliminary Budget estimates, ministers have taken a number of decisions to ensure we remain on track to surplus,” Mr English says. “They have focused on continuing effective government programmes that deliver results to New Zealanders and curbing programmes that do not.”

Budget decisions include:

• Running a zero Budget this year for the second consecutive year. Net new government spending out to 2015/16 totals just $26.5 million.
• Reprioritising $4.4 billion of existing spending over the next four years to ensure New Zealanders receive better public services, especially in health, education, science and innovation, welfare, and law and order.
• Confirming the operating allowance will remain at $800 million for 2013/14 and $1.2 billion in 2014/15.
• Building on revenue measures of recent years by closing tax loopholes around livestock and mixed-use assets. The livestock changes will reverse an estimated $184 million fall in revenue and the mixed-use asset changes will save $109 million over four years.
• Providing Inland Revenue with an extra $78.4 million to further improve its audit and compliance functions. This is expected to have a net $345.4 million positive impact on the operating balance over the next four years.
• Removing three tax credits that no longer serve their original purpose, including the income-under-$9,880 tax credit, the childcare and housekeeper tax credit, and the tax credit for the active income of children. This will save $117 million over the next four years.

“These are balanced decisions spread across all of the Government’s spending areas,” Mr English says.

“As a result, we remain on track for surplus while continuing to invest in priority areas that matter to New Zealanders, and which will help build the more competitive economy necessary to create new jobs and higher incomes.”

Between 2006 and 2008, final year spending on new discretionary operating and revenue initiatives totalled around $15 billion. In the past four years, this spending has grown by only around $750 million.

“Despite this, government debt has increased sharply in recent years, due to the impact of the domestic recession, the Global Financial Crisis and substantial costs of the Canterbury earthquakes,” Mr English says.

In 2008, net government debt was $10 billion. It has since increased to $50 billion and is forecast to reach more than $70 billion, before the Government returns to surplus and debt stops rising.

Budget forecasts show an operating deficit before gains and losses of $8.4 billion in 2011/12, falling to $7.9 billion in 2012/13 and $2 billion in 2013/14, before the $197 million surplus in 2014/15.

They also show Budget decisions will keep net core Crown debt below 30 per cent of gross domestic product. It is forecast to peak at 28.7 per cent of GDP in 2013/14, before the Government returns to surplus and starts reducing debt.

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Virtues (and Fluffed Opportunities) Of The Operation Burnham Report


One unspoken rule of thumb in any official public inquiry is : whatever you do, don’t conclude you were made to listen to “a litany of lies” even if the evidence of a deliberate cover-up is right there under your nose. In that respect, the report into the 2010 Operation Burnham military raid in Afghanistan has been a model of decorum. Bad stuff did happen and has been duly noted and lamented - but only as a lapse and departure from usual professional standards. Normal service can be trusted to resume shortly... More>>

 

Office Of The Speaker: Parliament Is Revamping Its Rules

Today, the Standing Orders Committee’s report on the review of Standing Orders was presented to the House. The Speaker of the House, the Rt Hon Trevor Mallard, chairs the committee. He said today that the 2020 review will make our rules more ... More>>

Environment: Govt Progress On Climate Change Essential, Risk Assessment Shows

The release of the National Climate Change Risk Assessment shows that the progress this Government has made to solve the climate crisis is essential to creating cleaner and safer communities across New Zealand. “Because of this report, we can see clearer ... More>>


Economy: Investing In The Tourism Sector’s Recovery

More than $300 million in funding has been approved to protect strategic tourism businesses, drive domestic tourism through regional events and lift digital capability in the tourism industry, Tourism Minister Kelvin Davis announced today. A $400 million ... More>>

ALSO:

National On MP Bill: Waka-Jumping Repeal Bill Passes First Reading

The Electoral (Integrity Repeal) Amendment Bill has passed its first reading, marking one step closer to Parliament getting rid of NZ First’s ‘waka-jumping’ legislation, National List MP David Carter says. “I’d like to thank the Greens for voting ... More>>

ALSO:

Covid-19:Legislation For Managed Isolation Payments Introduced

Hon Dr Megan Woods Minister of Housing Legislation to allow the Government to recover some of the costs for managed isolation and quarantine will be introduced to Parliament today, said Minister of Housing Megan Woods. “The Bill will allow the government ... More>>

ALSO:

Your Vote 2020: Bringing Election Coverage To Viewers Across TVNZ Channels And Platforms

As New Zealand gets ready to head to the ballot box this September, 1 NEWS is bringing voters comprehensive coverage and analysis of this year’s General Election. TVNZ’s coverage will draw on the depth of experience held across the 1 NEWS team, says Graeme ... More>>

Economy: 30% Believe Households Worse Off, 298,000 Expect To Lose Jobs

64% of New Zealanders feel the economic position of their households is the same or better than a year ago – and 30% think it is worse or much worse, while 298,000 think they will lose their jobs in the next 12 months. Households’ perceptions ... More>>

State Services Commission: Findings Of Investigation Into COVID-19 Active Cases Privacy Breach

Deputy State Services Commissioner Helene Quilter has today announced the findings of an investigation into a breach of privacy regarding sensitive personal information. The investigation looked into who or what caused the disclosure of the information, ... More>>

International Security: New Zealand Suspends Extradition Treaty With Hong Kong

The New Zealand Government has suspended its extradition treaty with Hong Kong and made a number of other changes in light of China’s decision to pass a national security law for Hong Kong, Foreign Affairs Minister Winston Peters says. More>>

ALSO:

Energy: 100% Renewable Electricity Grid Explored With Pumped Storage ‘battery’

The Government is taking a significant step toward its goal for 100% renewable electricity generation in a move that could be a game changer for consumers and the creation of a low-emissions economy, Energy & Resources Minister Megan Woods said. ... More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels