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Media Statement Treasury releases further information about long-term projections

28 January 2010

The Treasury has today published a working paper as a follow-up to last year’s Challenges and Choices – New Zealand’s Long-term Fiscal Statement.

The paper explains how the Treasury used its Long-term Fiscal Model to project Government revenue and spending over the next 40 years in the Long-term Fiscal Statement. It contains more information about options for addressing the projected deficits in the Government’s finances.

Both the Long-term Fiscal Statement and this working paper call for debate over how to manage in the face of the pressures of population ageing and rising public expectations for Government-funded services. The paper shows that, without raising taxes, achieving a sustainable fiscal position will require some tough choices and trade-offs between spending areas, such as health care and superannuation. It also shows that early, gradual changes can help reduce the risk of more drastic changes being forced on New Zealand.

Many of these trade-offs are presented by showing their potential impact on a notional “basket of public services” that the average person receives from the Government.

The views expressed in the working paper do not necessarily reflect the views of the Government. They are presented not as policy, but with a view to inform and stimulate wider debate.

The working paper is available here: TWP10-01 Challenges and Choices: Modelling New Zealand’s Long-term Fiscal Position

ENDS

Contact for Enquiries

Angus Barclay | Senior Communications Advisor
Tel: +64 4 917 6146
Email: angus.barclay@treasury.govt.nz
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