Govt sticking to surplus plan
Finance Minister Grant Robertson will deliver the half- yearly economic and fiscal update on December 14.
Robertson announced the date at a business breakfast yesterday where he reassured that the new Government was sticking to its fiscal responsibility commitments.
“We will deliver a sustainable operating surplus each year unless there is a significant disaster or major economic shock or crisis. We will ensure that Government spending as a proportion of the economy won’t rise above the recent historical average of 30 per cent of GDP. We will reduce net core Crown debt to 20 per cent of GDP within five years of taking office,” he said.
The half- yearly economic and fiscal update will include Treasury’s latest forecasts for the economy.
“There have been a range of forecasts for economic growth since the new Government was formed. Some are more pessimistic than others, with both the Reserve Bank and the OECD Economic Outlook more optimistic than some of the bank economists,” he said.
“In general these economists agree that over the next year there will be some softening of growth as the housing market remains flat and as net migration tapers off slightly,” Robertson said.
“Then, there is a consensus of a stronger growth track through 2019 and 2020 which i s expected to be supported by Government policies such as increasing R& D tax credits, increased wages and export growth.
“The foundations on which we are building our economic strategy are disciplined and careful fiscal and economic management, and a clear goal to see the well- being of all New Zealanders improve.”