Finance Minister Grant Robertson palms down his sixth price range on Thursday at 1200 AEST. Here’s what to search for.
* The backside line
Government monetary statements launched final week confirmed collapsing income. Treasury forecasts already had the 2023 price range in deficit, and this nearly actually wipes out the possibilities of New Zealand being again within the black, as a lot as Mr Robertson may need preferred to be.
* Updated financial forecasts
Storm clouds are gathering over the New Zealand financial system, which for therefore lengthy resisted COVID-19’s ravages however is now constrained by inflation and the Reserve Bank’s tightening. The OCR is already at 5.25 per cent, with one other assembly subsequent week more likely to convey one other hike. GDP contracted by 0.6 per cent within the December 2022 quarter, and one other fall would affirm a recession.
* Election yr sweeties
Mr Robertson may deny it is a motivation, however election years convey the expectation of price range time treats for taxpayers. The October 14 ballot – fewer than 5 months away – is definitely one of many causes the federal government dominated out a cyclone levy to assist pay for its multi-billion greenback clean-up. So what may be on provide? Tax credit, cheaper healthcare and infrastructure pledges.
* Climate pledges
A biofuels mandate, “clean car upgrade” and low emissions car leasing schemes and a container return system had been all axed this yr as Prime Minister Chris Hipkins trimmed the federal government’s agenda to satisfy the price of residing problem. There’s an expectation the price range will embody new emissions-cutting plans to switch these.
* The opposition’s wish-list
Attacks on the federal government’s elevated spending is central to the National celebration’s pitch for workplace. Opposition finance spokeswoman Nicola Willis desires to see “fiscal discipline restored” on Thursday after “six years of high-spending and high-waste budgets”. National desires a smaller authorities, together with cuts to consultants, communications employees and promoting.
Source: www.perthnow.com.au
