New Zealand government boosts spending, forecasts debt reduction
|New Zealand's Labour-led government has unveiled a budget that includes NZ$3.8 billion of new capital investments.
Key points (Source: Reuters)
GDP growth to a peak of 3.8 percent in 2019, underpinned by the increased government expenditure.
Operating surplus is expected to rise to NZ$3.14 billion for the year ending June, up from NZ$2.54 billion previously forecasted.
The surplus is forecast to rise to NZ$7. 32 billion at the end of the budget estimates period in 2021-22.
The debt-to-GDP ratio is seen falling to 19.1 percent by 2022.
NZ's Debt Management Office (DMO) will increase bond issuance by NZ$1 billion a year for the three years ending 2021, taking the total bond issuance to NZ$8 billion a year.
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