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Fiscal restraint needed despite recovery outlook – Willis

Half Year Update forecasts 3% growth, but Nicola Willis says tight fiscal discipline remains essential to return to surplus.

Finance Minister Nicola Willis says continued ‘fiscal discipline’ will be essential to restore the Government’s books to surplus, despite Treasury forecasting a strengthening economic recovery.

Releasing the Half Year Economic and Fiscal Update (HYEFU) today, Willis said global pressures remained a challenge, but Treasury now expects economic growth to accelerate, with the economy forecast to expand by 3 percent next year. Inflation is projected to stay low across the forecast period, while wages are expected to outpace inflation every year and ‘around 270,000 new jobs’ are forecast to be allegedly created over the next five years.

Treasury had previously forecast a small surplus in the Government’s headline operating balance, OBEGALx, in 2028/29. Updated forecasts now show a small deficit in that year, but Willis said the Government remains committed to achieving a surplus by then in order to put net core Crown debt on a downward path.



She said the Government would take a measured, medium-term approach to fiscal consolidation rather than reacting to short-term forecast movements, arguing New Zealand remained well positioned internationally. According to the update, New Zealand is still on track to return to surplus faster than countries such as Australia, the United Kingdom and Canada.

Willis confirmed operating allowances in next year’s Budget would be capped at $2.4 billion, significantly lower than under the previous government. Savings of around $11 billion a year had already been delivered, with further restraint required. Health, education, defence and law and order will be priority areas, with agencies instructed to continue finding efficiencies.

Image credit: Cphotos

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10 COMMENTS

  1. —–with agencies instructed to continue finding efficiencies.
    Yeah right.
    Get rid of the parasites in local AND national govt, you know, the ones who make a normal hard-working producing member of society a peasant to their disposal. WE HAD ENOUGH…GOT IT?

  2. And NZ’s dimwitted population of scurrying scammed bootlicking clowns will all bend over and bleat and
    vote for slimeball national or scumbag labour YET A FKN GAIN because “that’s
    all we can do” Baaaa… Baaaaaa……

    • Yep, running from one end of the paddock to the other, even though the farm gate has been left open…..Your average Kiwi voter, is a lazy brained, tribal, derascinated, ignoramus….and the worst part is, they don’t want, to be anything better.

      • Verified by the following;
        ‘Swimming in the Cesspool’ by Lt. Col. Greg Smith

        Swimming in the Cesspool Paperback – October 19, 2011
        by Gregg Smith (Author)
        5.0 5.0 out of 5 stars (1)
        This book tells the story of an American teacher who went to New Zealand with the intention of helping children learn the joys of mathematics. What he encountered was beyond his worst nightmares. From the US Review of Books review by Carol Davala(http://www.theusreview.com/reviews/Swimming-Smith.html): “I never expected to be ATTACKED for trying to make someone’s life richer by sharing my knowledge of mathematics with him, yet that’s exactly what I encountered in Dannevirke.” In vivid detail Smith recounts the verbal abuse, physical assaults, sexual harassment, and mob-like intimidation he suffered at the hands of students, parents, and the Dannevirke community. Swimming in the Cesspool is Smith’s effort to make public the truth about his own personal experience at Dannevirke High School. As the saying goes “the truth will set you free.” Hopefully Smith’s truth will serve as an enlightening resource to help bring secondary education in New Zealand to a higher ground.
        Editorial Reviews
        Review
        “I never expected to be ATTACKED for trying to make someone’s life richer by sharing my knowledge of mathematics with him, yet that’s exactly what I encountered in Dannevirke.”
        Gregg Smith never failed at anything. He attended the US Air Force Academy, earned degrees in mathematics and engineering, lived and worked in seven different countries, and even conquered the art of clowning. But his textbook style work subtitled, “An American Teacher’s Nightmare Encounter with New Zealand Secondary Education,” reveals the shocking tale of Smith’s mid-life career change, wherein ultimately the author’s ensuing teaching experience at Dannevirke High School could be classified as a catastrophic failure with a capital F.

        Anyone who has attempted to bring order to a classroom of unruly students, can surely relate to Smith’s plight. The author’s candid story brings to mind the docu-drama “Dangerous Minds,” wherein an ex-marine struggles to connect with the inner city youth she’s been hired to teach. Unfortunately in Smith’s case there is no triumphant Hollywood ending. In vivid detail Smith recounts the verbal abuse, physical assaults, sexual harassment, and mob-like intimidation he suffered at the hands of students, parents, and the Dannevirke community. The incidents took such a major toll on his health and psyche, that after eighteen months he resigned.
        Smith is understandably bitter about his experience. While his lengthy treatise includes documents, letters, recollections, and actual “greenies” (the forms he had to submit for disciplinary infractions), that back up his claims, the sheer volume of information speaks to his mounting frustrations. Amidst all the bureaucracy, red tape, and inconsistencies that go along with handling problematic students, Smith’s experience takes on a kind of “Alice in Wonderland” dimension, complete with the element of Mad Hatter madness. With personal anecdotes and witty sarcasm woven into his writing, he attempts to balance and rebut a harrowing situation gone way beyond his control.
        ” Swimming in the Cesspool” is Smith’s effort to make public the truth about his own personal experience at Dannevirke High School. As the saying goes, “the truth will set you free.” Hopefully Smith’s truth will serve as an enlightening resource to help bring secondary education in New Zealand to a higher ground. –US Review of Books
        About the Author
        Former teacher, engineer, computer analyst, Pentagon gopher, Air Force officer, United Nations inmate . . . What can I say in 3900 characters that would even begin to describe me? Just read the book!
        Things in my life had gone relatively well until I decided to go to New Zealand and train as a secondary school math and physics teacher. Nothing in my life could have prepared me for what greeted me in New Zealand schools: verbal abuse, sexual harassment, assault, indifferent students, violence, xenophobia, and an animosity toward education that I’d never imagined existed anywhere on earth. As one of my colleagues described it, “We’re just like Jesus Christ — we come here for no purpose but to do good and to help make their lives better and all they can think to do is to crucify us.”
        I’d think it unbelievable if I hadn’t lived through every nightmarish minute of it myself. The reality was actually worse — trust me.
        And then-

        Swimming in the Cesspool
        An American Teacher’s Nightmare Encounter With New Zealand Education
        By Gregg Smith

        eBook$9.99

        Overview
        This is the story of an American teacher who came to New Zealand hoping to share his love of mathematics with his students. What he encountered was an organized campaign to drive him out of his job and out of the teaching profession. This campaign cost him his job and his teaching career. This book tells this whole story, from the initial decision to make a mid-life career change to teaching through the failures of the various educational institutions in New Zealand and the ultimate end of his teaching career.
        Description
        This is the story of an American teacher who came to New Zealand hoping to share his love of mathematics with his students. What he encountered was an organized campaign to drive him out of his job and out of the teaching profession. This campaign cost him his job and his teaching career. Beginning with a detailed history of the author’s life prior to training as a teacher, the book weaves a tale through the intricacies of applying for and attending teacher training in New Zealand; finding a job as a teacher; STRUGGLING TO TEACH STUDENTS WHO ARE / WERE AGGRESSIVE OPPOSED TO LEARNING; and dealing with the various bureaucratic organizations that surround New Zealand schools. While much of the introductory material is light-hearted, the narrative evolves into a serious discussion of issues surrounding secondary education in New Zealand. The horrors confronting some teachers are described in full detail, with extensive documentation. The book brings the full impact of the problems home by giving the reader an intimate look at the effects of the abusive and destructive work environment that eventually led to the author’s walking away from his teaching career in order to preserve his mental and emotional health. This story is a must-read for anyone associated with education, particularly in New Zealand. IT raises serious questions about the demands we place on teachers. Ultimately, it questions the purpose and effectiveness of the education system as a whole, while exposing systemic failures at all levels. This story makes compelling, if frightening, reading. You may never want to put your child into a public school again.
        Read more
        About The Author
        Before descending into the abyss of New Zealand secondary eduction, Gregg Smith graduated from the US Air Force Academy and Colorado State University, eventually ending up with engineering and mathematics degrees. His initial professional work was developing computer graphics, signal analysis, and combat simulation programs for the US Air Force. After 8 years in the Air Force, Gregg went to Saudi Arabia, where he helped set up a large engineering centre for the Arabian American Oil Company. Following his five years in Saudi Arabia, Gregg went on to work in Switzerland, the US, Oman, the UK, Switzerland (again), and New Zealand. After spending a year training as a teacher, Gregg crashed into the nightmare that is New Zealand public secondary education. He has never recovered. When he’s not writing books or preparing documents for court proceedings, Gregg enjoys films, music, and theatre.

  3. The STATE alone is responsible for inflation: inflation without Government or indeed against Government, is impossible.- Felix Somary

  4. Stall tactics…THERE IS NO RECOVERY, PEOPLE!!! Get your heads around this!!!
    There are only Smart Cities and conversions over to that, CBDC’s Social Credit, Digital ID’s and a littany of new ‘Hate Speech Laws!
    These will be governed via Project Esther, Agenda 2030, NGO’s that were never voted on / for by the people of NZ, Noahide Law and Talmudic guidelines.
    Let’s stop this bullshit in it’s tracks in 2026- vote for the New Zealand Loyal Party before we lose EVERYTHING!!!

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