English to deliver 2011 budget on Thursday May 19
Focus will be on measures to build national savings and reducing vulnerability to foreign debt, finance minister says.
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Budget 25
The 2011 budget will be delivered on Thursday May 19 and will focus on further measures to build New Zealand’s national savings and reducing vulnerability to foreign debt, Finance Minister Bill English said today.
“The theme of Budget 2011 will be about building savings and investment, because as a country we need to save more, spend a bit less and reduce our heavy reliance on foreign debt," Mr English told Parliament's finance and expenditure committee.
“The government has already indicated that it intends to borrow less in future than is currently forecast and get back to budget surplus sooner. Therefore, the budget this year will reduce new operating spending to around $800-900 million a year, from the current allowance of $1.1 billion. We will prioritise new spending on health and education and set a path to meaningful surplus in 2014/15 – a year earlier than forecast," he said.
“We’re also looking at options to better manage government assets on behalf of taxpayers, so we can free up capital for substantial extra investment in assets like schools, faster broadband and better transport infrastructure – without having to borrow so heavily.
“Those options include the possibility of introducing the mixed-ownership model for four energy SOEs, where the government retains a majority shareholding on behalf of taxpayers and offers a minority stake to Kiwi investors.
Mr English said the government was seeking Treasury advice on this and would make its position clear before the November 26 election.
NBR staff
Wed, 09 Feb 2011
Wed, 09 Feb 2011
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English to deliver 2011 budget on Thursday May 19
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