As I mentioned recently, the National-led Government will present our fifth Budget to New Zealand on May 16.
The Budget will show that the Government’s books are in good shape – we are on track to post a surplus in two years’ time and begin paying off debt.
This has been a big turnaround in the Government’s books, after the impact of the recession, the global financial crisis and the Canterbury earthquakes.
The Budget will also show the steps that we are taking to help boost jobs and growth. For many businesses, the decision to hire another staff member is often based on the confidence they have in the economy’s future.
Rising confidence
Under National’s responsible economic management, we have seen business confidence rising, which is great news.
This comes off the back of the 3% economic growth that New Zealand experienced last year. Under National, New Zealand has the lowest mortgage rates since 1965, meaning that a family with a $200,000 floating mortgage will be paying around $200 a week less in interest costs.
While everyone’s circumstances are different, average after-tax wages have gone up 22% since 2008.
Furthermore, the release of the Household Labour Force Survey last fortnight showed a drop in the unemployment rate from 6.9% to 6.2%, with 38,000 more New Zealanders in work.
Encouraging investment
We are working hard to encourage more investment right across the New Zealand economy, as we know nothing does more to create jobs and grow incomes for New Zealand families than positive business growth.
We have removed unnecessary regulations and red tape, which have been restraining growth, and we are focused on improving important infrastructure, such as the country’s roads, and in connecting New Zealand with the world through ultra-fast broadband.
Our economic management was praised last month by IMF Managing Director Christine Lagarde, who described New Zealand’s economy as being “very stable” and “very promising,” and a lot better than other parts of the world.
We can be confident that under National, the economy is continuing to move in the right direction. As this week’s Budget will confirm, we remain committed to responsibly managing the Government’s finances so we can fulfil our promise to build a brighter future for you and your family.
John Key is Prime Minister of New Zealand. The above is exclusive to Indian Newslink.
