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


Strong Government finances and a strong economy

Strong Government finances and a strong economy

Responsible decision-making and a strong economy will deliver a forecast $3.7 billion surplus in 2018/19, up from $3.1 billion forecast in the current year, says Finance Minister Grant Robertson.

“The Treasury’s forecasts released today show that this Government is managing the books responsibly. This means we can inject much-needed investment into essential public services and pay down debt at a responsible rate,” says Grant Robertson.

“Budget 2018 sets out the first steps in our plan to transform the economy, our public services and how we work together to improve the lives of all New Zealanders.”

According to the Treasury forecasts presented in Budget 2018:
• Economic growth is expected to average about 3 per cent per year over the next five years.
• The unemployment rate is expected to drop to 4.1 per cent, which would be the lowest rate in 10 years.
• Real wages are expected to grow each year, with average annual earnings rising to $71,000 by June 2022.
• Inflation is expected to remain steady and stable at around 2 per cent.
• The operating balance before gains and losses (OBEGAL) is expected to continue to improve, reaching a surplus of $7.3 billion (2.1 per cent of GDP) in 2021/22, from $3.1 billion (1.1 per cent of GDP) forecast for the current year to June 2018.
• Net capital investment will total $41.8 billion in the years to 2021/22.
• Net core Crown debt is forecast to fall to 19.1 per cent of GDP in 2021/22.

“Our plan will ensure productive, sustainable and inclusive growth. Our job as a responsible Government is to look 30 years ahead – not just three. We are planning for what New Zealanders will need,” says Grant Robertson.

“Growth is expected to peak at 3.6 per cent in the December 2019 quarter as the Government’s policies bolster the economy, residential and business investment picks up, and consumption growth remains solid.

“Responsible management of the Government finances, and a strong economy, have given us the room to increase the operating and capital allowances at Budget 2018 and continue to meet the Budget Responsibility Rules.

“For Budget 2018, the operating allowance has been increased from $2.6 billion at the December 2017 Budget Policy Statement to $2.8 billion, and the capital allowance has been increased from $3.4 billion to $3.8 billion. Allowances for future Budgets have also increased, and are included in the Fiscal Strategy Report.

“These allowances give us the ability to make the investments needed to rebuild our critical public services and build a stronger economy through initiatives like the R&D incentive, the Provincial Growth Fund and the Green Investment Fund.

“Budget 2018 begins the transformation that will deliver New Zealanders an improved quality of life and better living standards for decades to come,” says Grant Robertson.

© 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>>


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>>


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>>


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>>


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>>






InfoPages News Channels