Which New Zealanders will benefit most from the new stimulus package?
The government has announced plans to invest $3.2 billion in a new stimulus scheme for New Zealand’s farmers and beef producers to ease the burden of drought.
The announcement came after the government was hit with a major loss of cash, with the deficit hitting $4.4 billion.
The country is expected to report its first cash deficit since 2008 on Monday.
Prime Minister Bill English said the country’s budget would be balanced in the medium term, but added that it was unlikely to achieve a surplus.
“In the long term we have to manage the risk of our fiscal balance,” he said.
“The risks to our fiscal position are enormous, and I think there is a real risk that we won’t have a balanced budget.”
He said the Government would use a combination of tax cuts and public spending to address the countrys biggest budget deficit, and would use the money to fund the government’s infrastructure, including schools, roads and hospitals.
But the Prime Minister said the current government had to take on some of the risks associated with the current economic climate, adding that the Government had a lot of work to do to rebuild confidence and rebuild trust in the system.
The Prime Minister also said he was open to a possible change in the rules on public funding of the public service, which he said had “been a disaster for the Government”.
“I’ve always said that if the Government is not doing its job it is not good for the country, it is bad for the economy,” he told reporters.
“I am not prepared to change that.”
Mr English also announced that he had set up a commission to look at ways to get New Zealand to be more efficient, but he said he did not think the country had “enough time” to do that.
“We need to be getting this done as quickly as we can,” he added.
“It’s important that we get to that point as soon as we possibly can.”‘
It’s going to take a long time’The Government said it had spent more than $1.8 billion over the past two years on the plan.
It said it would have received about $1 billion in public funds by this summer, but it would be hard to meet that requirement.
“If the Government were to continue on that path of spending, it would take at least two and a half years,” Minister of State for Finance David Parker said.
“It’s a long, long time.”
The Government also said it planned to spend $300 million on a study on ways to make New Zealand more efficient and more accountable, but that would only be available if it received a public funding commitment.
“Allocating public money to this study is an important first step towards achieving our goals of delivering better public services and better outcomes for Kiwis,” Mr Parker said in a statement.
“That is why we are continuing to work with stakeholders on the best ways to implement the recommendations.”