Operating balance before gains and losses ($b)
-6.9
-8.6
-5.4
-4.4
-3.0
Operating balance before gains and losses (% of GDP)
-3.7
-4.2
-2.5
-1.9
-1.3
Net debt ($b)
26.6
40.0
49.6
57.1
63.0
Net debt (% of GDP)
14.1
19.6
23.0
25.3
26.5
Gross Sovereign Issued Debt ($b)
53.8
67.0
69.7
71.6
77.8
Gross Sovereign Issued Debt (% of GDP)
28.4
32.8
32.3
31.7
32.7
MINISTER’S EXECUTIVE SUMMARY | 3
Budget 2010 also invests in the infrastructure needed for long-term growth and high-quality
public services. Public assets are forecast to increase in value by $32 billion over the next
four years. We are instituting higher standards of governance, planning and commercial
discipline to ensure we get the best value out of these assets.
Maintaining firm control of the government finances
The fiscal outlook has improved since last year, due to the economy growing again. By
sticking to the fiscal strategy laid out in that Budget, we now expect to return to surplus in
2015/16. This means that net debt will peak at 27.4% of GDP in 2014/15. Any favourable
surprises, such as those that stem from faster growth, will be used for faster deficit
reduction.
The projections show that public debt meets the long-term debt objective of 20% of GDP
in 2021/22. This would be a substantial achievement given the size of the shock we have
endured.
Conclusion
This Budget is about strengthening the recovery, helping New Zealand families get ahead
and maintaining sound finances. It makes the tax system fairer, lifts income levels and
addresses long-standing economic weaknesses. It continues this Government’s focus on
getting long-term, sustainable growth and shifting the economy away from borrowing,
consumption and government spending and back towards saving, investing in productive
areas and exporting.
Bill English
Minister of Finance
Economic and Fiscal Data at a Glance
Economic data
March years
2010
2011
2012
2013
2014
Real GDP growth (annual average % change)
-0.3
3.2
3.1
2.9
3.0
Inflation (annual % change March quarter)
2.2
5.9
2.4
2.4
2.4
90-day interest rate (March quarter)
2.7
4.3
5.2
5.4
5.7
Unemployment rate (March quarter)
7.1
6.2
5.5
5.1
4.6
Fiscal data
June years
2010
2011
2012
2013
2014
Core Crown expenses ($b)
64.8
70.7
71.5
74.2
77.0
Core Crown revenue ($b)
56.4
60.3
64.5
68.5
72.9
