Key wants govt back in black a year ahead of budget schedule
Prime Minister John Key wants the government to post a budget surplus a year ahead of the timeframe given in yesterday's budget.
Prime Minister John Key wants the government to post a budget surplus a year ahead of the timeframe given in yesterday’s budget.
“If it’s possible, I would actually like us to return to surplus even earlier than 2014/15,” he said in a speech to the Trans Tasman Business Circle in Auckland this afternoon.
A record budget blow-out of $16.7 billion was revealed in the budget yesterday but Finance Minister Bill English's third budget forecast the Government's books returning to surplus in about three years(2014/15) a year sooner than previously expected, but obviously not as fast as the Prime Minister would like.
"Being in surplus means having choices – for example to invest more in public services, pay down debt, cut taxes, resume contributions to the Super Fund, or any combination of those things," Mr Key said.
He didn’t go in to the chances of the optimistic timeframe being achieved but said the government was “not going to raise taxes or introduce new ones”, reinforcing yesterday's budget message that any extra money would come from decreased government spending.
“We think higher taxes would risk snuffing out the recovery and damaging New Zealand’s competitiveness. And we think there is plenty of scope to be more disciplined about government spending.”
He also reassured people that electricity consumers would not be affected by plans – to be part of National’s election manifesto – to partially sell down the government’s stake in four state-owned electricity companies.
"Consumer New Zealand came out a while ago and said that the mixed-ownership model wouldn’t drive up electricity prices. That’s because power prices are actually influenced by government regulation not by ownership,” Mr Key said.
NBR staff
Fri, 20 May 2011
Fri, 20 May 2011
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Key wants govt back in black a year ahead of budget schedule
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