Strong Govt books support ‘go hard, go early’ response
Hon Grant Robertson
Minister of Finance
PĀNUI
PĀPĀHO
New Zealand’s ability to go hard and go
early in the fight against COVID-19 has been underpinned by
strong Government finances and the growing economy heading
into this global pandemic, Finance Minister Grant Robertson
says.
The Treasury today released the Crown financial statements for the eight months to the end of February. Net debt was $600 million below forecast at 19.2% of GDP, and the surplus of $1.4 billion was $100 million above forecast.
“Obviously, these numbers will look a lot different when the next set of accounts come out. But they indicate the economy’s strength and the Government’s ability to soften the impact and support New Zealanders and businesses,” Grant Robertson said.
“Governments
around the world are lifting debt to pay for increased
health spending and support for their economies. Advanced
economies are starting from an average net debt position
above 70% of GDP, with the UK around 75%, the US above 80%,
Italy above 120% and Ireland above 50% of GDP.
“We
are using our Government’s strong balance sheet to go hard
and go early in our public health response, cushion the blow
for workers and businesses, and position the economy for
recovery.
“This includes the wage subsidy scheme
that will be worth between $8 billion and $12 billion so
businesses can keep workers on their books and support
people to stay home, break the chain and save lives during
Alert Level 4.”
Other measures the Government has announced to date include:
The $500 million increase to
public health funding for the immediate response.
A
six-month deferred mortgage scheme for home-owners affected
by the virus, so people don’t lose their homes due to
COVID-19.
The $6.25 billion Business Finance Guarantee,
and business tax measures to support cashflow, and help
businesses continue to operate.
A doubling of the Winter
Energy Payment so older New Zealanders can stay warm during
winter.
Main benefit increases, and
Rent freezes and a
ban on terminations of tenancies/evictions other than in
exceptional
circumstances.