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Budget Policy Statement 2012


Budget 2012 will be about sticking to the plan the Government has set out for the next three years.

The global economic environment remains uncertain and this makes it even more important to maintain clear and credible fiscal settings.

The Government is committed to returning the operating balance to surplus in 2014/15 and reducing net debt as a proportion of GDP. That will help to take pressure off interest rates and the exchange rate and is crucially important for New Zealand's credibility with international financial markets.

At the same time, the Government is continuing to address New Zealand's significant economic challenges, including a sustained rebalancing of the economy towards the internationally competitive sectors of the economy. A broad range of targeted microeconomic reforms will help to lift productivity and competitiveness in the economy.

Budget 2012 will also contribute to the Government's priorities of delivering better public services and of rebuilding Christchurch.


Hon Bill English
Minister of Finance

16 February 2012

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