Reported 6 months ago
New Zealand's new government is expected to announce larger budget deficits and increased borrowing in its first budget, despite weaker revenue. Economists predict deficits larger than forecast, delaying a return to surplus until 2028, with bond issuance possibly increasing by NZ$15 billion over four years. The government aims to fulfill election promises like tax cuts, but faces challenges in ensuring a credible path back to surplus amidst recessionary conditions and a need to rein in debt. Finance Minister Nicola Willis plans fiscally neutral tax cuts, but it remains to be seen if the worsening economic outlook will affect the proposed tax relief measures.
Source: YAHOO