Update along with comments from New Zealand finance minister English

  • NZ sees 2016/17 net debt at 24.3 pct of GDP (budget forecast: 25.6 pct of GDP)
  • Sees 2016/17 OBEGAL surplus NZ$ 0.47 billion (budget forecast: NZ$0.719 billion)
  • Sees 2016/17 cash balance NZ$-2.19 (budget forecast: NZ$ -4.2 billion)
  • Sees net debt declining to 18.8 pct of gdp by 2020/21
  • Sees 2017/2018 OBEGAL surplus NZ$3.3 billion (budget forecast: NZ$2.455 billion)
  • Sees 2020/21 OBEGAL surplus NZ$8.5 billion
  • Sees March 2017 yr real GDP growth at 3.6 pct (budget forecast: 2.9 pct)

English:

  • If Australian economy slipped into recession, sees number of implications for NZ
  • Total fiscal cost of Kaikoura earthquake forecast between nz$2 billion to nz$3 billion
  • Net nz$1 billion in earthquake costs which cannot be met from other sources added to budget forecasts
  • Surplus lower than forecast due to impact of Kaikoura earthquake and acc insurance costs
  • GDP growth to average around 3 pct over next five years driven by construction, tourism, migration, low interest rates
  • Contributions to superannuation will restart in 2020/21 when net debt falls below 20 pct of GDP
  • Says responding to earthquake and reducing debt are higher priorities than income tax cuts now
  • Says govt will consider options for income tax cuts either in 2016/2017 or later as fiscal situation improves

(Headlines via Reuters)