NZ Budget 2017: Having your cake and eating it too – Westpac

The research team at Westpac explains that according to the just published budget of New Zealand, strengthening economic conditions are allowing the Government to have its cake and eat it too.

Key Quotes

“In Budget 2017, the Government has introduced a Family Incomes Package to support those on lower and middle incomes. This includes an adjustment to tax thresholds, an increase in Working for Families, as well as increases in accommodation support.”

“Spending is being increased in a range of areas, including public and social services, as well as much needed infrastructure investment.”

“Firm economic conditions mean that the Government can make these changes while maintaining its focus on longer-term debt reduction and improving the economy’s financial resilience.”

“The initiatives announced today are likely to support GDP growth over the coming years. However, we have some concerns that economic growth, and therefore the surpluses, are unlikely to be as healthy as the Government expects over the course of the next five years.”