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New Zealand's Fiscal Budget to See NZ$11.87 Billion Deficit
Thursday, 28 May 2009 02:08:52 GMT  |  Luis Gil, DailyFX Research
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New Zealand Minister of Finance Bill English unveiled that National Party's first fiscal budget since taking power last year. English revealed a 2009-2010 budget deficit of NZ$11.87 billion ($7.3 billion), more than that which was expected.

In his accompanying statement, the finance minister revealed a set of forecasts. The economy will fall by 1.7% in the year through March 2010, but will expand 1.8% in the 12 months through 2011. To finance many of the projects announced, the treasury will sell NZ$50 billion in bonds over the next four years. Negative and slowing growth, accompanied by expansive spending, will see the debt-to-GDP ratio rise by as much as 43% by 2017.

These measures are a massive effort to "keep the economy going through the recession" by "supporting jobs, safeguarding entitlements, improving public services and building more infrastructure," English's plan said.

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