Budget 2021 makes all the right noises
- It showed an improved NZ economic and fiscal outlook, with smaller operating deficits, a lower peak in crown debt and a modestly scaled-back NZ Government bond programme compared to previous COVID-era updates.
- The stronger fiscal position leaves the Government with more policy options. Rebuilding the economy and enhancing wellbeing have been given top priority. Operational and capital allowances for government spending have been increased, albeit modestly, with government spending expected to decline as a share of GDP over the projection period.
- The Government have committed to rebuilding the economy and enhancing societal and economic wellbeing. Massive investments are signalled. It will take time to assess whether this will pay dividends.
Read more in our latest Economic Note