A responsible Budget for the times

BusinessNZ says Budget 2024 shows a responsible approach to spending in areas that have the potential to significantly improve New Zealand’s economic growth.

Chief Executive Kirk Hope says given the fiscal situation New Zealand finds itself in, the Government will need to be rigorous in its pursuit of keeping expenditure down if it hopes to return to a surplus by the 2027-2028 window outlined in today’s Budget.

“Businesses will welcome the focus on much needed infrastructure investment alongside prioritising education, while New Zealanders should see immediate benefit from long overdue tax cuts which will give the average income household up to $102 per fortnight.

“The last review of tax brackets was more than a decade ago. Going forward, we’d like to see a regular review to ensure we don’t see bracket creep of this scale in future.”

Mr. Hope says that when managed carefully and in combination with restrained Government spending, tax cuts need not be inflationary.

“This year’s Budget presents a path back to surplus, but the real test for the Government will be the need to maintain a tight grip on expenditure, with operating allowances for Budget 2025-2027 being tight. Closely managing within future allowances will be necessary.”

Mr. Hope says in order to obtain revenue, increase employment and be able to better invest in areas that desperately need it, New Zealand must boost productivity and grow its economy.

“That’s why the Government should be encouraging business development at every turn. BusinessNZ welcomes the increase in funding for Ministry for Regulation and looks forward to working together to ensure businesses are able to effect change without the burden of unnecessary compliance costs.”

30 May, 2024

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