Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

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

 

Govt Accounts In Solid Shape To Respond To Impact Of Cyclone Gabrielle

Hon Grant Robertson

Minister of Finance

The Government’s books are in good shape to meet the challenges ahead and support New Zealanders facing cost of living pressures and extreme weather events.

For the six months to the end of December, the Operating Balance before Gains and Losses (OBEGAL) recorded a deficit of $2.8 billion, $39 million above that forecast at the Half Year Economic and Fiscal Update in December 2022 and $5.2 billion lower than for the same period a year ago. Net debt was slightly above expectations.

“The Government has redoubled its focus on what matters to New Zealanders such as the cost of living, including extending fuel tax reductions and half price public transport fares till the end of June to help take some off the pressure on household budgets and business costs,” Grant Robertson said.

“The extreme weather that New Zealand has experienced recently is putting families and businesses under even more pressure, with some losing their homes and livelihoods. We are committed to continuing to support them through these difficult times.

“New Zealand is in a strong financial position to do so thanks to the Government’s careful and prudent management of the books. The impacts of flooding in Auckland in late January and now Cyclone Gabrielle have yet to be fully known and the Treasury is currently accessing the economic and fiscal impact.

“We know that this is a significant event affecting families and businesses as well as the country’s roads, bridges and energy networks and it will have a sizable impact on the economy. Insurance will cover significant elements of the event, but the Government will need to step up with significant resources to fix broken infrastructure. This will affect the Government’s operating and capital spending plans in the current year and subsequent years and is being factored into planning for the Budget.”

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Core Crown tax revenue was $375 million or 0.7 percent below forecast at $54.5 billion, while core Crown expenses were $411 million, or 0.7 percent, above forecast at $60.5 billion.

Net debt was 21.6 percent of GDP, slightly above the forecast of 21.3 percent of GDP.

“New Zealand has shown its resilience through the Covid pandemic due to our strong economic and financial management. Our debt levels are among the lowest in the OECD and well below the Government’s debt ceiling of 30 percent, ensuring we are well positioned to handle the impacts of Cyclone Gabrielle and future economic shocks,” Grant Robertson said.

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines


Gordon Campbell: On The US Opposition To Mortgage Interest Deductibility For Landlords


Should landlords be able to deduct the interest on the loans they take out to bankroll their property speculation? The US Senate Budget Committee and Bloomberg News don't think this is a good idea, for reasons set out below. Regardless, our coalition government has been burning through a ton of political capital by giving landlords a huge $2.9 billion tax break via interest deductibility, while still preaching the need for austerity to the disabled, and to everyone else...
More


 
 

Government: Concerns Conveyed To China Over Cyber Activity
Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government. “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity... More

ALSO:


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.