Despite being presented as a ‘zero’ Budget, this year’s spending has been well focused on areas helpful for future growth.
With all new discretionary spending having to be matched by savings or tax revenues from elsewhere, Budget 2012 (presented to Parliament on May 24, 2012 by Finance Minister Bill English) has nevertheless managed to reprioritise spending in a responsible manner.
Science and innovation have received significant funding this Budget, with big ticket items like the Advanced Technology Institute and the Performance Based Research Fund looking set to improve outcomes in commercial science and innovation.
New Zealand business increasingly finds competitiveness is dependent on innovation, and funding announced for science and innovation initiatives will be well received by the business community. More funding for science and engineering tertiary courses also fits well with such an approach.
The investment approach to welfare reform displayed in this year’s Budget is highly positive, given the critical need for a more engaged, highly skilled working population.
On-going improvements in the tax system are also positive, although business would have liked to see more fundamental tax reductions to increase New Zealand’s international competitiveness.
The overall aim of getting the books back in the black is responsible and will be widely supported by the New Zealand community, although many would like to see a faster programme of reform in areas such as superannuation eligibility and interest free student loan expenditure.
It is to be hoped that a mandate for the decisions needed to grow the economy will emerge from the foundations of Budget 2012.
Phil O’Reilly is the Chief Executive of BusinessNZ based in Wellington. He is the Guest Speaker at this year’s Indian Newslink Sir Anand Satyanand Lecture scheduled to be held on Monday, July 30, 2012 at Stamford Plaza Hotel in Auckland. The subject of his address is Good governance – who wins: the shareholder, the public or Gordon Gekko?
Tickets for the event, priced at $140 including GST, cocktails and dinner are now available. Please write to editor@indiannewslink.co.nz
A related story appears under Homelink.
