NZ government surplus track could be more challenging given global market turmoil, but give things time to settle down first, English says

NZ government surplus track could be more challenging given global market turmoil, but give things time to settle down first, English says

The latest turmoil on global financial markets is bound to make government Budget targets more challenging, although events should be given time to settle down before a conclusion is reached on the effects they have on New Zealand, Finance Minister Bill English says.

The New Zealand government is forecasting a return to budget surplus in the 2014/15 year from a deficit of about NZ$16 billion in 2010/11, while keeping net government debt below 30% of GDP before beginning to pay it off.

Australian Prime Minister Julia Gillard yesterday said her government’s challenge of returning to surplus by 2012/13 would prove more difficult given the sovereign debt crises in Europe and the US, although her government was committed to its surplus track.

The sentiment of staying on track has been echoed in New Zealand, with English and Prime Minister John Key saying the economy was in a good position to handle any fallout from global events, due to policy changes made during the government's three-year term, and as the government was not desperate to borrow on global financial markets, having pre-funded about half of the current year’s borrowing requirements.

Speaking to media in Parliament on Thursday afternoon, English said global markets had been moving around so much that they should be given time to settle down.

“The first half of this year our economy grew faster than expected, in Australia it grew a lot slower than expected, in fact it contracted,” English said.

“Now these events make future prospects look just a bit more risky, so I think we should give it a bit more time to settle down,” he said.

It was “bound to be” more challenging to meet targets.

“We’d be much better off without this sort of turmoil, but I think we’re going to have to get used to outbreaks of market volatility and loss of confidence. This could go on for years,” English said.

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So, has John Key gone to ground on the subject?

he's gun shy because he has got a bit of stick over the last couple of days for his brash and bullish predictions / hopes re: treasury growth projections from earlier this year and he has realised that he is putting himself in the gun sight too much so he has asked Bill to pick up the slack and front for a while.  they must think we're dumb???

Can't we just sell some more of the family silver?

 Bill, you as the leader of NZfinances do you not know what's coming ?

Why is this not more then just a carefully designed and executed PR campaign by your government to make sure to get voted in again. Every time something major happening on the world stage, you are taking the opportunity and correcting your previous, positive prognoses downwards.

Politics Walter, you should know better. But  why to you not tell the NZpublic the bloody tr.............. no, no Walter behave - I'm on my feet.

No worries Bill...another three years and another 10 to 15% debasement of the currency..keep it up and the debts will just go away...mind you so too will the savers capital as it heads into property and stuff where it will be safe from you and Alan.

Pity the poor sods who believe the shite about saving being a pathway to wealth...their Kiwisaver wealth might buy them a Chocolate fish in twenty years.

Remind us Bill...if you dare...why  did your govt instruct the RBNZ to run inflation past 3% and then some...and don't give us the spin about gst being countered by tax cuts...we both know dam well inflation is way above 3%.

Tell us the truth....you are stealing from the thrifty and prudent to bailout the banks by washing away the risk of a collapse on the back of losses...right Bill.

“Now these events make future prospects look just a bit more risky, so I think we should give it a bit more time to settle down,” he said.

Translation of that spin:

The forecasts to a surplus were always based on heroic assumptions including the NZD dropping to 0.56 against the USD. Those assumptions now appear laughable, but we hope to obscure that reality until after the election.