Finance Minister announced a $4.1 billion fiscal surplus this morning
.jpg)
The government announced a $4.1 billion fiscal surplus for the year ended 30 June 2017 this morning, which is $2.2 billion stronger than last year, Finance Minister Steven Joyce says.
Core Crown tax revenue growth of $5.2 billion outpaced core Crown expenditure growth of $2.4 billion. Joyce said our net debt has reduced in nominal terms by $2.4 billion from last year to $59.5 billion. Net debt has dropped to 22.2% of GDP.
Joyce said the state of the Crown accounts were a direct demonstration of the hard work of New Zealanders since the Global Financial Crisis (GFC) and the benefit of a strong economic plan that consistently delivers growth.
Core Crown tax revenue was $75.6 billion for the 2017 financial year end, up 7.4% from the previous year with all major tax types increasing. Joyce said the 12.3% growth in company tax, the 7.1% growth in GST and the 7.4% growth in personal income tax were direct consequences of the confidence and growth of Kiwi companies and the job market.
Joyce said this year was the first-time debt has reduced in actual dollar terms since the GFC and the Christchurch earthquakes. “It’s a significant milestone in the country’s economic recovery from those twin shocks.”
Joyce added that the full year result should be interpreted with caution, and “not seen as automatically flowing through into higher surpluses than forecast in the years ahead.
“Treasury has based its forecasts on current economic settings and some reasonably solid growth predictions for the years ahead. A number of commentators have noted a softening of growth indicators in recent days”.
Joyce said the government’s future surpluses will need to meet the significant commitments it has to the next four Budgets, including a $32.5 billion infrastructure programme.
“We also need to keep reducing debt over time to prepare for the next rainy-day event,” Joyce warned.
Related stories:
Sound economy and financial system, RBNZ
OCR unchanged at 1.75%
Core Crown tax revenue growth of $5.2 billion outpaced core Crown expenditure growth of $2.4 billion. Joyce said our net debt has reduced in nominal terms by $2.4 billion from last year to $59.5 billion. Net debt has dropped to 22.2% of GDP.
Joyce said the state of the Crown accounts were a direct demonstration of the hard work of New Zealanders since the Global Financial Crisis (GFC) and the benefit of a strong economic plan that consistently delivers growth.
Core Crown tax revenue was $75.6 billion for the 2017 financial year end, up 7.4% from the previous year with all major tax types increasing. Joyce said the 12.3% growth in company tax, the 7.1% growth in GST and the 7.4% growth in personal income tax were direct consequences of the confidence and growth of Kiwi companies and the job market.
Joyce said this year was the first-time debt has reduced in actual dollar terms since the GFC and the Christchurch earthquakes. “It’s a significant milestone in the country’s economic recovery from those twin shocks.”
Joyce added that the full year result should be interpreted with caution, and “not seen as automatically flowing through into higher surpluses than forecast in the years ahead.
“Treasury has based its forecasts on current economic settings and some reasonably solid growth predictions for the years ahead. A number of commentators have noted a softening of growth indicators in recent days”.
Joyce said the government’s future surpluses will need to meet the significant commitments it has to the next four Budgets, including a $32.5 billion infrastructure programme.
“We also need to keep reducing debt over time to prepare for the next rainy-day event,” Joyce warned.
Related stories:
Sound economy and financial system, RBNZ
OCR unchanged at 1.75%
