Key Gives Budget Hints

May 7, 2009 New Zealand FinanceNew Zealand Taxation  No comments

Prime Minister John Key gave indication to the upcoming budget in a speech given on the 7th of May.

On the 7th of May, New Zealand Prime Minister John Key addressed a group of business world figures in regards to New Zealand’s economic situation and upcoming budget. While this speech was aimed at further indicating that the upcoming budget will be smaller then previously expected, there was still an air optimism to John Key’s words.

The relatively sparing budget was attributed by John key to the condition of the New Zealand budgetary books. There is currently a $7.7 billion deficit, as compared to the October forecast $3.4 billion surplus. The current economic downturn has also garnered a $2 billon lower than forecast tax receipt, further adding to the economic duress of the country.

Seemingly, while John key does wish to keep New Zealand distant from possible credit downgrades, he also seems reluctant to cut any entitlements to New Zealand citizens, promising no cut backs in education or health care.

John key remained somewhat coy on releasing details on what aspects of the budget will have to be cut. Although he was open to the fact tat reshaping, restructuring and cut backs will be made.

The speech can be found in the Beehive Media releases section, here. The speech video can be seen here.