Budget to map path back to surplus

Wednesday 27th April 2011

The Government agrees with the OECD that New Zealand should return to budget surplus as soon as possible and next month's Budget will take steps in that direction, according to Finance Minister Bill English.

"In its economic survey of New Zealand out today, the OECD points out that achieving faster economic growth requires progress across a broad policy front," English said.

"In particular, it recommends a faster improvement in our fiscal position, which would take the pressure off monetary policy. The OECD points out this would allow interest rates to remain low for longer and create room for the exchange rate to ease.

"All of this would support the economic adjustment - which is already underway - to build faster growth from savings, exports and productive investment, rather than excessive borrowing and increases in Government spending."

English said the Budget next month will outline several measures that will help the Government return to budget surplus.

"Budget 2011 will take further steps to get the Government's finances in order, setting a path back to surplus to we can start repaying debt on behalf of taxpayers and help increase national savings."

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