Conclusion
Budget 2011 builds a strong platform for economic growth. In the near term, a range of factors, including the rebuild of Christchurch, are likely to lift growth. Longer term, the Government believes that a balanced and competitive economy can deliver substantially more jobs and growth. Budget 2011 takes a range of measures that will continue to tilt the economy away from government spending and debt-funded consumption. The adjustments to its spending programmes will assist in lifting national savings and deliver sound government finances.
The economy is likely to experience both positive and negative shocks in the coming years. If the recovery is stronger than forecast, revenue windfalls will be used to pay down debt. This will enable the Government to make an earlier return to surplus with lower net debt. If the economy is weaker than forecast, the Government will consider further fiscal adjustments in future Budgets. The Government is committed to returning to surplus and will continue to look for opportunities to achieve this as quickly as is practical.
