Preface
The Public Finance Act 1989 requires that the Treasury prepare a statement on New Zealand's long-term fiscal position at least every four years. The Statement must relate to a period of at least 40 consecutive financial years, and be accompanied by a statement of all significant assumptions underlying any projections it includes.
Affording Our Future is our third such Statement.
This Statement is in two parts. Part I explains the long-term fiscal pressures facing governments, and why it is so critical that governments continue to manage the Crown's fiscal position prudently over the long term. Part 2 illustrates some options for how spending or revenue might be adjusted to get New Zealand's finances on a more sustainable footing.
This Statement also has some important Annexes. Annex 1 sets out supplementary material on the possible future path of major government spending and revenue areas. Annex 2 sets out our key projection assumptions in table form. And Annex 3 summarises the process we went through in producing this Statement, which was particularly open and collaborative.
This Statement is not a standalone document. It is accompanied by a suite of analytical papers, commissioned by the Treasury, to underpin the analysis and conclusions. These supporting papers are referenced throughout this document and are available in full at www.treasury.govt.nz/government/longterm/fiscalposition/2013.
In preparing this Statement, the Treasury has used its best professional judgement about the risks and outlook for the long-term fiscal position.
Signed
Gabriel Makhlouf, Secretary to the Treasury
