WORD CLOUD: The words which went towards making up Bill English’s first Budget speech. Stuff.co.nz
The main points from the Budget yesterday.
* The New Zealand Government reports a record high operating deficit of 8.4% of GDP.
* Nonetheless, a return to surplus is expected in the year ended June 2015. The core deficit is forecast to fall to 4.7% of GDP next year and 1.8% the year after.
* Deficit reduction will be heavily dependent on the Government meeting an aggressive attempt at expenditure control.
* The Government intends to maintain its target of net debt below 20% of GDP but it will peak at 29.6% of GDP in June 2015. Currently it sits at an estimated 20.8% of GDP.
* GDP is forecast to increase 1.8% on an annual average basis for the year ended March 2012. Growth is then expected to pick up to 4.0% in 2013 and 3.0% in 2014.
* The Government will issue $13.5 billion bonds in 2011/12 and $12.0 billion in 2012/13. This compares with $20.0 billion in the year to June 2011.
From the Bank of New Zealand publication “Economy Watch”