Govt Plan Strikes The Right Balance, Says IMF   3 Apr 2012

Finance Minister Bill English has welcomed the International Monetary Fund’s assessment of the Government’s plan to return to surplus by 2014/15.

In its preliminary concluding statement on New Zealand, published today, the IMF notes the Government’s medium-term deficit reduction plan is aimed at limiting the increase in public debt to guard against future economic risks and contributing to lowering external debt.

“In our view, this strikes the right balance between the need to limit public debt increases, while containing any adverse impact on economic growth during the recovery,” the IMF says.

Mr English says returning to surplus in 2014/15, while challenging, will make an important contribution to reducing New Zealand’s external debt and improving national savings.

“The IMF and others clearly recognise the focus of the Government’s plan in achieving this important goal,” he says

“Getting back to surplus will help create a buffer against future global shocks and, as the IMF notes, it will limit pressure on monetary policy and therefore the exchange rate. This will be important in easing headwinds for exporters and reducing the current account deficit.

“That’s why Budget 2012 will be a zero budget or close to zero, in terms of extra spending over the next four years. We will do that because we need to get back to surplus so we’re not continuing to increase debt.”

IMF report: http://www.imf.org/external/np/ms/2012/040212.htm

(New Zealand Government)

Add a comment

Bookmark and Share

News

Body found in London park believed to be missing Kiwi

30 Sep 2014 News
London police believe a body found in a southwest London park is that of missing New Zealand man Malcolm McKinlay. Mr McKinlay, who... more

Uncovering the secrets of NZ's discovery

30 Sep 2014 News
Two scientific papers have shed new light on how Polynesian explorers may have arrived in New Zealand, but the authors have... more

Business

NZ dollar drops after weak Australian retail sales

1 Oct 2014 Business News By Suze Metherell
  NZ dollar drops as weak Australian retail sales sap demand for trans-Tasman currencies Oct. 1 (BusinessDesk) - The New Zealand... more

NZ dollar heads for 11% slump in Sept quarter

30 Sep 2014 Business News
By Paul McBeth Sept. 30 (BusinessDesk) - The New Zealand dollar is heading for an 11 percent slump in the September quarter as... more

Living

Three first places at the national Young Designer Awards

1 Oct 2014 Arts
ACG Strathallan   By Kennedy Anderson from ACG Strathallan, winner of Photography section, Young... more

Sargeson Lecture to Feature Award-Winning Novelist

1 Oct 2014 Arts
For those who have friends and family living in Hamilton, this might be of interest. Taking an imaginary place and making it seem... more

Property

NZ building consents flatline in August

30 Sep 2014 Property
By Suze Metherell Sept. 30 (BusinessDesk) - New Zealand building consents held steady in August from a month earlier, underpinned... more

Australia's Quattro in talks to buy NZ properties

30 Sep 2014 Property
By Suze Metherell Sept. 30 (BusinessDesk) - Quattro Asset Management, an Australian fund manager, is in negotiations to buy two... more

Migration

UK Government: Indefinite Leave to Remain made simple

30 Sep 2014 Migration
There are thousands of expats living in the UK who are aiming for permanent residency status and, eventually, a British passport. But... more

Migration boom rolls on as fewer kiwis depart

30 Sep 2014 Migration
New Zealand's annual net migration rose to a record in August, exceeding Treasury's forecasts, and spurred by more migrant arrivals... more

Travel

Travel tidbits and deals of the week

30 Sep 2014 Travel & Tourism
Some of the best travel deals going - both in New Zealand and abroad. Bookmark this page and check back each week for all the latest ... more

Air NZ's Luxon defends domestic regional air fares

30 Sep 2014 Travel & Tourism
By Paul McBeth Sept. 30 (BusinessDesk) - Air New Zealand chief executive Christopher Luxon has defended its pricing on domestic... more

Sport

Historic 1972 BRM Formula One car to race in New Zealand

1 Oct 2014 Motor Sport
NZFMR Historic 1972 BRM Formula One car to race in New Zealand An historic Formula One racing car with a strong connection to a New... more

New Zealand's Top sporting rich list

30 Sep 2014 Sport
The Herald reveals who they believe are the highest-paid New Zealand sports people and look at how they make a living on and off the ... more

Columns

Gordon Campbell on the last rites for the TPP

1 Oct 2014 Opinion By Gordon Campbell
The Trans Pacific Partnership trade deal is one of those litmus issues that has always had more to do with one’s place on the... more

Time to debate proportional representation

30 Sep 2014 Opinion
Article - Sridhar Ekambaram   Time to debate proportional representation By Sridhar Ekambaram30 September 2014 With the... more

Kiwi Success

UCOL Chief Executive Appointment

1 Oct 2014 Appointments
UCOL Chief Executive Appointment Leeza Boyce has been appointed as UCOL’s new Chief Executive to succeed Paul McElroy upon ... more

Business leader honoured

1 Oct 2014 Appointments
One of New Zealand’s leading businessmen is to receive the University of Waikato’s most prestigious award of Honorary... more

Recruitment

NZ's top pay packet revealed: $4.1m

30 Sep 2014 Recruitment
With a total pay package worth $4.1 million, ANZ New Zealand's David Hisco is the top-paid boss in the Business Herald's executive pay... more

NZ job market expected to strengthen - survey

30 Sep 2014 Recruitment
The job market is expected to strengthen and potential employees are increasingly looking at staying in New Zealand for work instead... more