Budget unlikely to include tax cuts, indicates New Zealand FM
Bill English, the Deputy Prime Minister and Minister of Finance of New Zealand, has indicated in a pre-budget speech at an industry event that the budget is not likely to include tax cuts.English has indicated that the government is planning larger spending this year but is aiming to cut spending in the coming years. He said that he has taken a decision not to include a 2017 tax cut in the budget. The government is aiming to spend today in order to save tomorrow.
Experts have said that population growth led by migration is putting pressure on health and education services in the country. They pointed out that the exiting allocation of $1 billion for new spending will not be able to cater to the growing demand. The Finance Minister might increase allocation to both the sectors significantly when he presents his eighth Budget on May 26.
The addition funds will come from a fund of $2.5 billion that was saved for the election year. Out of the total $2.5 billion, the minister had kept $1.5 billion for offering tax cuts. Thus tax cuts now appear to be out of the agenda for the government until improvements in economic and fiscal situation are recorded. However, the minister said that offering tax cuts remain a priority for the government.
English said that when and if the tax cuts are offered, they will be focused on easing the impact of "bracket creep" that sees low- and middle-income earners move to higher taxes as their incomes will rise.
- Nikola Motors puts hydrogen fuel-cell semi truck Badger project on back burner
- BMW expands vehicle recall over battery issue to more than 4,500 U.S. plug-in hybrids
- Karma Automotive announces attractive price tag & unique features for upcoming GSe-6 electric sedan
- Twin River acquires iconic Bally’s brand from Caesars Entertainment for $20 million
- Wynn Resorts’ Encore to close for 3 days a week due to low demand