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Budget 2011 Home Page Budget Policy Statement 2011

Conclusion

Budget 2011 will focus on ensuring balanced and sustainable economic growth, while delivering on our fiscal strategy. This Budget Policy Statement reaffirms our commitment to the prudent management of the Crown's balance sheet and to low levels of net debt. The release of the first Investment Statement of the Government of New Zealand supports that commitment by improving the information base for the Crown's balance sheet.

The Government will restore the fiscal buffer against future shocks by ensuring that net debt is brought back to a level no higher than 20% of GDP by the early 2020s. We will do this by returning the operating balance, before gains and losses, to surplus as soon as practical, and no later than 2015/16. Budget 2011 will support this plan by restraining new discretionary initiatives within an operating allowance of $1.12 billion per annum and a capital allowance of $1.39 billion, and by shifting existing spending towards higher value priorities.

Given the need to address the imbalances in our economy, and the need to restore our fiscal buffer, we will continue to consider our spending and revenue policies at each Budget. We will also continue to consider the scope and pace of our economic policy reform agenda. Budget 2011 will outline the next steps in the Government's strategy to lift economic growth on a sustainable basis, with particular focus on reducing the imbalances in the economy.

Hon Bill English
Minister of Finance

6 December 2010

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