Government on track for surplus

Treasury this week released the Pre-Election Economic and Fiscal Update (PREFU). It forecasts average annual growth of about 3 per cent between 2012 and 2016, more than 150,000 new jobs over the forecast period and strong growth in wages and household incomes. This reaffirms National’s commitment to building a stronger economy based on more exports, and delivering more real jobs.

National is committed to balancing the books sooner. The Pre-Election Economic and Fiscal Update shows we are on track for a return to surplus in 2014/15 with our economy continuing to pick up pace. The economy has now grown in eight of the past nine quarters and growth in the first half of this year has been stronger than forecast in Budget 2011 in May. Getting back to surplus as soon as possible is one of the most important things the Government can do to lift national savings and rebalance the economy towards our productive sectors.

This year's PREFU is in stark contrast to that delivered three years ago, which revealed a decade of deficits and sharply rising debt. The Government has worked hard to turn those forecasts around, while managing the many challenges we have faced along the way.

It's crucial we stick to our programme of responsible financial management and policies that build a more competitive economy if we are to make the most of the opportunities that lie ahead.

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