Conclusion
New Zealand society has changed dramatically over the past 40 years and we know there will be significant changes over the next four decades.
There are some things we can be reasonably confident about when looking ahead.
We know, for example, that the ageing of our population experienced in recent decades will continue. We can also reasonably anticipate that the majority of our population mid-century will be richer and healthier than today, just as we are on average richer and healthier than we were four decades ago.
We have started and will continue to face upward cost pressures on the Government, primarily from the rising costs of public healthcare services and NZ Super.
This Statement has shown that we have choices about how we manage these cost pressures. There is no one perfect answer and anything we might do will have pros and cons.
The options people will prefer will depend on their judgements and what they see as the appropriate role of government. For example, whether people think that taxes should increase to address future increases in healthcare spending will depend on the level of public healthcare provision each individual sees as part of the Government's core role.
No matter what policy changes we decide on, it is important that we decide on them early. Fiscal pressures are already starting to build, and the sooner we can address them the easier it will be. The next step in managing fiscal pressures is deciding what choices we will make to achieve a prudent level of government debt by the end of this decade and maintaining it beyond that date.
This Statement is an important part of the Treasury's efforts to explain and share information about how we might afford our future.
