NZ: A 'patient' Budget - Westpac

Analysts at Westpac explain that there were no surprises in today’s NZ Budget as the tax take delivered a small windfall which was promptly gobbled up by increased health spending, leaving relatively little for other spending initiatives.

Key Quotes

“A higher tax take was matched by increased spending, meaning similar forecast surpluses over the five years compared to the Treasury’s last forecast.”

“Treasury’s growth projections were softer in the near-term, but remain too optimistic in our view.”

“The Government retained its focus on fiscal responsibility. We support that, given the demands that the aging population will put on spending in the future.”