The Treasury has released its latest report on the country’s long-term fiscal position.
At least every four years the Treasury produces a Statement on the Long-term Fiscal Position of the government, looking at least 40 years into the future. We do this to inform commentary and discussion on New Zealand’s significant long-term fiscal challenges, and to help decision makers assess the long-term impacts of policy options that might be considered in these areas.
On Wednesday 29 September 2021, the Treasury published He Tirohanga Mokopuna 2021: The Treasury’s combined Statement on the Long-term Fiscal Position and Long-term Insights Briefing.
This report incorporates our first Long-term Insights Briefing to the Minister of Finance, as required by the Public Service Act 2020, looking at the medium to long-term trends, risks and opportunities to New Zealand through the Treasury’s core fiscal stewardship lens.
Two phases of consultation
Scope of the Statement
The first phase of consultation on the Treasury’s 2021 Statement on the Long-term Fiscal Position focused on the proposed scope of the Statement.
Media statement: The Treasury opens consultation on New Zealand’s long-term fiscal challenges (2 March 2021)
We provided a consultation document that outlined the proposed subject matter for the 2021 Statement. Submissions on this document were invited over a four-week period, closing 26 March 2021.
We received five written submissions and held interviews with eight subject matter experts in fields such as retirement, productivity, economic forecasting, and business. These provided a range of feedback on both the proposed topics of the Statement, as well as on possible policy directions government could take.
The consultation document, along with a summary of the public feedback received on the proposed topics for the Statement, can be found here: Looking to the future: New Zealand’s long-term fiscal challenges.
Draft of the Statement
The second phase of consultation on the Treasury’s 2021 Statement on the Long-term Fiscal Position invited public feedback on a draft of the Statement. Submissions on this document were invited over a four-week period, closing 30 July 2021.
We received 21 submissions in total. In addition, we met with a range of stakeholders representing Māori, Pacific communities and youth interests. We also met with academics, economists and other subject-matter experts to get in-depth feedback on key themes such as demographic change, retirement policy, and climate change. We met with some experts individually and some as a group.
The draft of the Statement can be found here: Draft Statement for Consultation: He Tirohanga Mokopuna 2021.
A summary of the feedback received on the draft statement can be found here: He Tirohanga Mokopuna 2021 - Feedback