This Budget is no lolly-scramble

National’s Budget 2011 sets out the next steps of the Government’s programme to build faster growth, increase national savings and create sustainable jobs built on savings, exports and productive investment. This is a responsible and balanced Budget for the times. It takes steps to ensure the Government returns to Budget surplus by 2014/15, so that we can start repaying debt…

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An early return to surplus

The combined impact of the Christchurch rebuild, high commodity prices and the proposed sell down of a minority stake in certain SOEs have provided the New Zealand Government with the leverage to get the country back to surplus a year earlier than expected,” PricewaterhouseCoopers Chairman John Shewan said. “It is pleasing suggestions that the major tax reforms introduced last year…

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Fiscal policy short of expectations

Budget 2011 can be characterised as “cautious and safe,” with most announcements generally pointing in the right direction of reducing Government expenditure and debt. However it lacked signposts towards future reforms and other than the extensions to the mixed ownership model, more could have been done to produce structural change. The Budget is heavily dependent on the Treasury’s predictions for…

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Budget 2011: What the Government says

Benefits of mixed ownership The Government owns about $220 billion of assets, and expects to invest another $34 billion over the next five years. In proposing the ‘Mixed-Ownership’ concept, the Government would own most of a Company, offering minority stake to shareholders. This would allow investment of about $7 billion in assets such as schools, hospitals, and broadband, reducing need…

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Spending cuts begin at Beehive

Budget 2011 signifies a further step in the Government’s ‘sinking-lid’ approach to stemming a decade long trend of expenditure increasing relative to GDP. The Government’s stated agenda is to shift New Zealand’s economic focus to savings, productive investment and exports. An area of focus of this budget is to tighten the squeeze on low productivity, core Government expenditure and return…

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Christchurch on priority

The rebuild and recovery of Christchurch is at the heart of the assumptions underpinning New Zealand’s return to surplus. Following are the highlights: Funding for Canterbury Earthquake Recovery Authority (CERA) of $25.5 million over two years Further $10 million of support for Cantabrians Total Government spending of $8.8 billion (including ACC & EQC) Government creating a $5.5 billion CER Fund…

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