Budget 2017 shows a strong economy generating a solid set of fiscal forecasts. Rising budget surpluses have afforded the Government the opportunity to make some choices about how to use those surpluses and that has included a significant family incomes package, detail on planned infrastructure investment and significant new spending in social services. This is a balanced budget with much of the criticism likely to centre on whether the Government should be using its balance sheet more effectively. Overall the Budget paints a picture of a solidly growing economy underpinning a strong fiscal outlook and that's important in today's world.
Bevan Graham | NZ Chief Economist | AMP Capital