On 17th May 2018, Finance Minister submitted New Zealand’s Budget for 2018 in the Parliament.
The Budget process allows the government to:
- set its fiscal objectives in respect of revenue, expenditure, debt repayment and investment;
- maintain effective fiscal control and plan for the coming year and beyond;
- allocate the available resources, consistent with the government’s strategic objectives and priorities;
- fulfil the legislative requirements for the budget; and
- seek authority from parliament for spending.
Budget includes following initiatives:
- Research and development (R&D) investment increase to 2% of GDP inside ten years and that is a 50% increase in R&D spending. Tax incentive that will provide a stable mechanism to incentivize increased business expenditure on R&D;
- Economic growth expected to average an annual 3% over next five years;
- Surplus of $3.7 billion for 2018/19, up from $3.1 billion now.
Budget 2018 webpage provides budget overview and other information.
