Governments Stills Aims for Surplus in 2014

May 1, 2012 New Zealand Taxation

John Key talks on surplus goalDespite the recent reduction in the forecast for the New Zealand budget, John Key has repeated the government’s goal of reaching a surplus within the next three years.

Following a meeting of the Cabinet on April 30th, the Prime Minister John Key confirmed that the government would stick to its goal of achieving a budgetary surplus by the end of the 2014 fiscal year. The Prime Minister’s words come only days after the Finance Minister Bill English announced that the projection for the government’s budget surplus in the 2014 fiscal year has been reduced from a NZD 370 million surplus to a NZD 640 million deficit.

The Prime Minister explained that all the Cabinet Ministers and their departments are currently investigating means of reducing their expenditures and boosting revenues further. However, John Key assured the New Zealand public that any new cost-cutting measures will not have a heavy negative impact on New Zealanders, saying “…I don’t think people should think that this Budget’s going to be a slash and burn exercise.” He explained the situation further, saying “…there will be some changes in there, and that’ll have some implications for some New Zealanders, but overall I think the balance is about right.”

John key acknowledged that reaching a surplus would now be an even more difficult task, but stated that the having a balanced budget was a government goal and it would be achieved if it was possible to do so.

Photo by US Embassy New Zealand