October 05, 2023
Books show economy on upturn
The latest release of the government’s books shows a deficit of $9.4 billion in the Operating Balance before Gains and Losses, which is below the $10 billion forecast in the Pre-election Economic and Fiscal Update.
Finance Minister Grant Robertson says it shows the economy has turned a corner because of the Government’s responsible and balanced financial management.
He says New Zealand had the second strongest growth in the OECD last quarter.
Tax revenue is much stronger than forecast in PREFU and closer to what had been projected by Treasury in May’s Budget.
Treasury is forecasting average annual growth of 2.6 percent over the forecast period, with the addition of 100,000 plus extra jobs and wage growth will outpace declining inflation, meaning household budgets will stretch further.
Mr Robertson says now is not the time to upend strong economic management with unfunded tax cuts that will drive more children into poverty, push up inflation and higher mortgage costs.