If US govt fails to pay its suppliers by October 17, the result would be very serious for all economies including New Zealand
On the nation's current track, revenue will fail to meet expenses by the mid-2020s, Treasury says.
Deficit is being exaggerated by insurance flows stemming from the Canterbury rebuild and is not ringing alarm bells, Treasury secretary says.
The most radical reform since the 1980s is under way.
"A lot of this stuff is actually quite positive; and it's great Treasury and a few other agencies and some ministers are open about the need for improvement."
Secretary Gabriel Makhlouf tells parliament's finance and expenditure committee its forecast average annual growth of 2.5% in the next five years is by and large intact.
The Treasury secretary wants the department to become "an exciting and energetic hothouse of ideas" under his leadership.
"Treasury is risk adverse. Nothing apparently wrong with that, but Treasury seems to be risk adverse irrespective of the cost."
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