Key says budget on track for 2015 surplus

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

BUSINESSDESK: Prime Minister John Key has restated the government's confidence it can run a budget surplus in the year to June 2015, just days after Finance Minister Bill English questioned its achievability.

"Budget 2012 will show we are on track to return to surplus – as we promised – in 2014-15," Mr Key said in a speech to the National Party's Otago regional conference yesterday.

That is an advance on Mr English's commitment four days ago, in a pre-Budget speech to the Wellington Chamber of Commerce, that ministers "remain focused on staying on track to surplus".

Achieving fiscal surplus, very close to balance, has become a political totem for the Key government, although Mr English has warned events such as a sharp deterioration in the world economy or more natural disasters could lead to a rethink.

Mr Key's comments this morning signal the government has already found the extra $640 million a year in either spending cuts, revenue increases or faster growth required to close the deficit gap in three years.

With his party riding high in the polls despite months of decisions judged miscalculations by both pundits and Opposition MPs, Mr Key said many New Zealanders were supporting the government's careful fiscal approach.

"One of the lessons from last year’s election was that New Zealanders expect their government to do what they’ve been doing – tightening its belt, paying down debt and spending carefully," he said.
 


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7144 -0.0042 -0.58%
AUD 0.9319 -0.0070 -0.75%
EUR 0.6517 -0.0040 -0.61%
GBP 0.4658 -0.0032 -0.68%
HKD 5.5392 -0.0336 -0.60%
JPY 88.3660 -0.6190 -0.70%

Commods

Commodity Price Change Time
Gold Index 1188.0 2.350 2015-05-28T00:
Oil Brent 63.2 0.500 2015-05-28T00:
Oil Nymex 57.7 0.110 2015-05-28T00:
Silver Index 16.6 0.020 2015-05-28T00:

Indices

Symbol Open High Last %
NZX 50 5777.6 5834.8 5777.6 0.89%
NASDAQ 5096.3 5106.6 5106.6 -0.17%
DAX 11716.1 11773.8 11771.1 -0.79%
DJI 18154.1 18154.1 18163.0 -0.20%
FTSE 7033.3 7049.6 7033.3 0.11%
HKSE 27398.3 27559.4 27454.3 0.30%
NI225 20510.3 20626.2 20551.5 0.22%