NZ to See Frugal 2009 Budget

April 20, 2009 New Zealand Finance  No comments

New Zealand Prime Minister John Key has said that the upcoming budget will be more frugal in comparison to previous governments.

In an interview with the Financial Times (FT) John Key said that fears of a credit rating downgrade by rating agency Standard & Poor’s from New Zealand’s current AA+, is what is apparently keeping the upcoming New Zealand budget at a constrained level.

As such, there is a need to cut governmental spending and by necessity includes any further financial stimulus for New Zealand. These comments are partnered with an OECD report which states that New Zealand is likely to remain in a recessionary state throughout 2009 and possibly recover “hesitantly” in 2010.