Andrew Dickens discusses Budget 2019 with KPMG

Andrew Dickens Afternoons

The Government’s investing $10.7 billion in Budget 2019 to improve New Zealanders’ wellbeing in a world-first budget, but are the numbers good enough?
Andrew Dickens is joined by KPMG's Director Harriet Dempsey and Tax Advisor Bruce Bernacchi, alongside ZB political editor, to discuss this year's budget.
Finance Minister Grant Robertson says the Government’s delivered critical investments needed to help address long-term challenges, while sticking to its self-imposed Budget Responsibility Rules.
That means net core Crown debt as a percentage of GDP is forecast to be 19.9 percent in 2021/22.
And the surplus will grow to $6.1 billion by 2022/23.
Bernacchi told Andrew Dickens he's sceptical.
"I would be surprised if we ever get to the point that the Government has a $6 billion surplus and hasn't found a way to spend it. If you look at these numbers, there's a lot of extra spending planned there, there's nothing about raising any new revenues."
He says that they the Government is hoping for three per cent GDP growth year on year in order to drive economic activity and drive the taxes to pay for this budget.
Dempsey says that the planned infrastructure commission will be beneficial to the economy and business, with new incentives that will encourage working together.
"That body is there, and now has the funding to promote good infrastructure."

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