A solid Budget that could have done more to stimulate the economy

A solid Budget that could have done more to stimulate the economy

A solid Budget that could have done more to stimulate the economy

BusinessNZ says the 2017 Budget does a good job of addressing Government priorities of maintaining surpluses, reducing debt and funding infrastructure and services, but fails to meaningfully improve tax settings

BusinessNZ Chief Executive Kirk Hope says every Budget offers a great opportunity to promote future economic growth by reducing taxes across the board, but this opportunity has not been completely grasped today.

“Increasing the two bottom tax thresholds is a positive investment in family incomes for many. However, failing to adjust other thresholds and tax rates means a missed opportunity to stimulate the economy and create greater growth.

“Not changing the business tax rate is another missed opportunity to stimulate greater business investment and growth.

“Investment in infrastructure, innovation and trade in the 2017 Budget is positive.

“Business welcomes the spending on transport and tourism infrastructure, help for exporters and co-funding for greater research and development through Callaghan Innovation. This is judicious investment in high-growth areas of the economy.

“Overall, the Budget takes broad based approach to addressing economic constraints and dealing with social issues in a more coordinated way. We’d give Budget 2017 a pass mark of B+.”

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25 May, 2017

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