Baked-in big spending is the Budget's biggest threat

In the Budget, Grant Robertson asserted we'll be back in surplus by 2025. Yeah, right. (Image: Dan Brunskill)

Thu, 26 May 2022

Are financial forecasts really that credible any more? That's a question I’m asking myself after looking at the budget forecasts. The Treasury does some great work pulling together the budget and the associated forecasts. New Zealand releases an enviable amount of world-class budget information. But that information now faces credibility challenges because spending projections are becoming ridiculously disconnected from recent spending reality. Pencil in deficits if recent spending trends continue, which looks like...

Unlock all stories free for 10 days

Stay informed on business, government and financial developments across New Zealand.

Deeply researched, twice-edited and fact-checked news
Annual subscribers also receive a complimentary subscription to The Wall Street Journal
Personalised email news alerts, plus gift up to 5 stories a month to non-subscribers

We won’t charge for 10 days. You can cancel anytime with two clicks, an email or a phone call. Find out more.

We are serious about journalism.

Name {{ registerForm.errors.get('name') }}

Email address {{ registerForm.errors.get('email') }}

Phone Number {{ registerForm.errors.get('phone') }}

Job Title {{ registerForm.errors.get('title') }}

Password Minimum password length of 8 characters.
Require at least one upper and lowercase, numeric, and special character. {{ registerForm.errors.get('password') }}

Repeat password {{ registerForm.errors.get('password_confirmation') }}

We had trouble validating your card. It's possible your card provider is preventing us from charging the card. Please contact your card provider or customer support.

Credit Card

Cardholder's name

{{ __(plans[index].interval) | capitalize }} {{ plans[index].attributes.old_price | currency }} {{ plans[index].price | currency }}

You will be charged in 10 days unless you cancel beforehand.
We will remind you three times before charging you.
All subscriptions auto renew but are easy to cancel.

I Accept The Terms Of Service

{{ registerForm.errors.get('terms') }}

Tax: {{ taxAmount(selectedPlan) | currency }}

Total Price Including Tax: {{ priceWithTax(selectedPlan) | currency }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerSeat ? '/ '+ spark.seatName : '' }} {{ selectedPlan.type == 'user' && spark.chargesUsersPerTeam ? '/ '+ __('teams.team') : '' }} / {{ __(selectedPlan.interval) | capitalize }}

Markets Market close

NZ sharemarket up 0.1% on flat trading day

The S&P/NZX 50 Index closed at 11,790.92, up 14.18 points or 0.12%.

Graham Skellern 6:15pm

Policy

The Great Expectations on Kāinga Ora and KiwiRail

The Government is continuing to refresh boards and fire up expectations.

Dileepa Fonseka 5:55pm

The Great Expectations on Kāinga Ora and KiwiRail

Economy

Auckland tumbles, Southland on top in ASB regional scoreboard

Auckland has fallen to 5th place.

Tom Raynel 4:10pm

Auckland tumbles, Southland on top in ASB regional scoreboard

Sponsored

Smart chargers don't just charge EVs

They also take the pressure off a stressed power network - We.EV

We.EV

Sponsored

Big change coming to insurance

Industry reset sees risk-based pricing coming for many homeowners.

VERO

More Economy

Economy

Auckland tumbles, Southland on top in ASB regional scoreboard

Auckland has fallen to 5th place.

Tom Raynel 4:10pm

Economy

Business gloom offers inflation hope

The New Zealand Institute of Economic Research’s (NZIER) Quarterly Survey of Business Opinion shows a continued deterioration in business confidence in the second quarter.A net 35% of firms expected a deterioration in the general economic outlook over the coming months on a seaso...

Staff reporters 02 Jul 2024