continuing to repair the books and the revisions should not be over emphasised<\/a>.<\/p>\n“It’s the path to surplus that counts.”<\/p>\n
She said the government was looking for the economy to get “fresh air in its lungs” and recover strongly from 2027 onwards which would boost the tax take.<\/p>\n
Willis said the government would run a tight financial regime, with the amount of money available for new spending next year to remain capped at $2.4b, but it was determined to get back to surplus a year earlier than Treasury’s forecasts.<\/p>\n
The Treasury forecasts generally showed an economy hitting a peak of growth at 3.4 percent in 2027 before easing back to around 2.5 percent for the next three years, while inflation eases back to around 2 percent over the forecast period, with unemployment also easing below 5 percent.<\/p>\n
Treasury said it was basing its forecasts on a pick up in housing, an increase in migration, and continued solid export trade, but saw risks to its forecasts in both directions.<\/p>\n
The positive risks included the economic recovery being quicker and stronger than anticipated, while the downside risks were that the recovery was softer as consumers and businesses remained cautious.<\/p>\n
Net debt was forecast to peak at 46.9 percent of GDP in 2028\/29 before edging lower from 2030.<\/p>\n
The Debt Management Office reduced the borrowing programme by $5bn over the next two years, but increased it by $8bn in total in 2027 and 2028.<\/p>\n
Sign up for Ng\u0101 Pitopito K\u014drero<\/a>, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.<\/p>\n","protected":false},"excerpt":{"rendered":"Further spending discipline is needed, says Finance Minister Nicola Willis. Photo: RNZ \/ Samuel Rillstone Return to budget…\n","protected":false},"author":2,"featured_media":163437,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[48,138,47,219,111,43,139,69,49,46,44,45],"class_list":["post-185857","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-audio","tag-business","tag-current-affairs","tag-economy","tag-new-zealand","tag-news","tag-newzealand","tag-nz","tag-podcasts","tag-public-radio","tag-radio-new-zealand","tag-rnz"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/185857","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=185857"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/185857\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/163437"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=185857"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=185857"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=185857"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}