web analytics

Fudge-it-Budget

Written By: - Date published: 9:18 am, December 11th, 2014 - 31 comments
Categories: ACC, accountability, budget 2014, debt / deficit, economy, Economy, gst, Politics, tax - Tags:

The lied about surplus in the run up to the 2014 National Election is looking like matching Penn and Teller for magical skills. It’s the ultimate disappearing act.

Unlike bad economic figures when Labour is in Government, this isn’t National’s fault. Bill English says so. It’s all down to a whole lot of unusual and unpredictable events outside Penn and Teller’s control.

Interesting to see where the forecast tax revenue is (or isn’t) coming from.

Core tax revenue was $97 million below forecast due to lower than expected goods and services tax and personal income source deductions, though that was partly offset by a bigger take from corporate taxpayers and strong provisional assessments in other individuals tax.

Expenses were $118 million higher than forecast at $23.98 billion, due largely to the $103 million indemnity deed for Solid Energy to preserve the miner’s balance sheet.

When English was “abracadabra-ing” his surplus the much maligned David Cunliffe said this

Labour leader David Cunliffe began by taking aim at the surplus, designating the Budget a “Fudge-it Budget” because of the creative accounting needed to achieve a surplus. Spending was delayed on the Christchurch rebuilding, ACC levy reductions were held back for a year, and Auckland roading projects were funded by interest-free loans rather than spending.

“National calls the Fudge-it Budget ‘steady as she goes’. Steady as she goes all right – just do not ask where she is going.”

Winston Peters put it, in his usual way, succinctly with barbs. It is worth a read.

“Just don’t ask where she (economy) is going, it turns out we didn’t have to wait long to see.

Look? Len Brown had an extra marital affair!!!!!!

 

31 comments on “Fudge-it-Budget ”

  1. lprent 1

    National’s spinners are so good about the diversions suitable for kids with attention deficit disorders.

    It is a pity that so many of those kids wind up becoming journalists reporting in the media…

    Oops. Did I say that?

    • Tom Gould 1.1

      It’s not “National’s spinners” who are the problem, everyone spins, it is the lazy craven Tory chooks in the Gallery who are donkey deep embedded in the Tory spin machine, who are the problem, corrupting both their own profession and politics at the same time. The public doesn’t stand a chance.

      • lprent 1.1.1

        I don’t think that it makes that much difference. I’d just prefer that they used their own brains and their own knowledge to separate the clouds of chaff from the kernel.

        But generally we don’t seem to educate journos all that well.

        It is a revelation when you read one that actually can think and has done enough study to know what they are looking at…. Brian Fallow, Fran O’Sullivan, Colin James, and a few others. A few in the gallery..

  2. Puckish Rogue 2

    Since you’re referencing Penn & Teller you may be interested in watching some of their programmes

    http://en.wikipedia.org/wiki/List_of_Penn_%26_Teller:_Bullshit!_episodes

    They’re very funny and have a go at everyone

  3. ghostwhowalksnz 3

    Core Crown residual cash deficit is $2.2 Billion

    Ie thats before credit card is pulled out .

    And regarding radio spectrum sales, I wonder if English has been lending money on the sly so the media giants can “buy” their spectrum like they did some years ago for the TV3 radio group

    And you got to love this one.
    Environmental protection: + $121 million $103 million of this relates to the Crown’s signing of the Deed of Indemnity with Solid Energy.
    pg 9 Financial statements

    Thats right bailing out a coal miner is lumped under Environmental protection

    So thats how we get a “green” national government

  4. ghostwhowalksnz 4

    It gets worse : Some of that ‘indemnity” is for Pike River !

    Talk about playing politics by dancing on the graves of dead miners- where the family dont have any grave to speak of.

  5. Poission 5

    Core tax revenue was $97 million below forecast due to lower than expected goods and services tax and personal income source deductions

    There are two parts that are of interest,the first being a decrease in consumption tax due to increased interest rates and falling oil prices.

    The second being a decrease in paye source deduction due to decreased payrolls (read zero or less wage increases out to 2018) which is at odds with the spiel of increased jobs growth.

    http://www.treasury.govt.nz/budget/forecasts/prefu2014/013.htm

    • ghostwhowalksnz 5.1

      What increased interest rates ?

      The fall in gst from petrol sales, this is for the October year, so was it bit early for the big falls in petrol prices in the last 6 weeks

  6. Philip Ferguson 6

    Low pay, longer hours, less tea breaks and more crap; welcome to 21st century NZ capitalism: http://rdln.wordpress.com/2012/02/08/low-pay-longer-hours-and-less-social-mobility/

    • tracey 6.1

      But.. But… But… If only people would let us finish what we started, the trcikledown would start…

      Signed

      Roger douglas
      Ruth richardson

  7. Nick Morris 7

    Yes, there is plenty of live ammunition here.

    Andrew Little will have to find a balance between being the reasonable bloke, concerned about the battlers and the principled critic of laissez-faire capital exploitation and lazy, self-serving Tory politics. Anger and logic in equal measure. We look forward to his efforts in the next few months.

  8. tracey 8

    The government has done little to garner credit for good economic management because it never controlled dairy prices or tectonic plates. Sadly so much damage has been done and will be done before the duped voters get a chance to show their mettle

  9. Tom 9

    The one statement I do not hear people talk about is 100 Billion in the RED.
    All this few million here and a few million there BALANCE THE BOOKS ……….. The Question is and Should BE………….. Where is the 100 BILLION John…………….

    This question will flush out all the decoy economics……………. NZ has been ripped off. 250,000 kids are in poor shape ….. wages can not cover expenses for 40% of the population. The Environment is being sold off to the highest bidder………..

    National does not care about everyday NZers ………………. I say again …………
    WHERE IS THE 100 BILLION JOHN…………… HOLD THE GOVERNMENT ACCOUNTABLE.

    • tracey 9.1

      What 100 billion are you referring to?

      • Barfly 9.1.1

        Government debt?..I suspect

      • Tom 9.1.2

        National Debt……………….

        • Naturesong 9.1.2.1

          Talking about public debt – with is currently in the mid 90’s (38% of NZ’s GDP), with net public debt being about $20b less than that.

          Bruce Besset’s article just prior to the election gives a good precis of the issue.

          The other part of the debt story is New Zealands net foreign debt – this is the one that no ones talks about, and should be mentioned every time the current account deficit figures are quoted.

          The wikipedia article on the <Economy of New Zealand also provides a easy to understand summary

          The New Zealand economy has recently been perceived as successful. However, the generally positive outlook includes some challenges. New Zealand income levels, which used to be above much of Western Europe prior to the deep crisis of the 1970s, have never recovered in relative terms. For instance, the New Zealand nominal GDP per capita is about 80% that of the United States. Income inequality has increased greatly, implying that significant portions of the population have quite modest incomes. Further, New Zealand has a very large current account deficit of 8–9% of GDP. Despite this, its public debt stands at 33.7% (2011 est.)[67] of the total GDP, which is small compared to many developed nations. However, between 1984 and 2006, net foreign debt increased 11-fold, to NZ$182 billion, NZ$45,000 for each person.[22]

          The combination of a modest public debt and a large net foreign debt reflects that most of the net foreign debt is held by the private sector. At 31 June 2012, gross foreign debt was NZ$256.4 billion, or 125.3% of GDP.[68] At 31 March 2012, net foreign debt was NZ$141.65 billion or 104.4% of GDP.[69]

          New Zealand’s persistent current-account deficits have two main causes. The first is that earnings from agricultural exports and tourism have failed to cover the imports of advanced manufactured goods and other imports (such as imported fuels) required to sustain the New Zealand economy.[citation needed] Secondly, there has been an investment income imbalance or net outflow for debt-servicing of external loans. The proportion of the current account deficit that is attributable to the investment income imbalance (a net outflow to the Australian-owned banking sector) grew from one third in 1997 to roughly 70% in 2008.[70]

          While I was largely supportive of Micheal Cullen’s tenure as finance minister (he’s the sort of conservative centre right finance minister that I would be ok with in a National government), it’s this that really grates: “Despite this, its public debt stands at 33.7% (2011 est.)[67] of the total GDP, which is small compared to many developed nations. However, between 1984 and 2006, net foreign debt increased 11-fold, to NZ$182 billion, NZ$45,000 for each person.”

      • seeker 9.1.3

        hi tracey @ 1.57pm
        can’t give you the link as i can’t figure this pad out but i just put in ‘national debt clock 2014 nz ‘ and wait for my hair to rise in shock….

    • Chch_chiquita 9.2

      When asked the National will answer there was a GFC and ChCh earthquake and it is only because of the amazing financial literacy of this Govt that we are ONLY 100B in the red. If it was Labour we would have been worse off. Don’t expect to get any real answers.

      • Tom 9.2.1

        They can say that all they like but the numbers don’t add up …………. it is a matter of record what has been spent and its nowhere near 100 Billion. I do expect to get real answers and if we had honest media (not foreign corporates) this would be the case. Once we allow the media and a corrupt Gov to get away with it were buggered………..

  10. aerobubble 10

    Dairy boom, green and fiscal debts. By not passing on the cost of carbon, unlike its competitors who had to pay for xarbon, Key soften us up for a farming debt crisis.

    Key goes into his last question time and declares he does not understand that high housing costs, poor availability harms economies of scale. Expensive homes, high rents, longer travel times, saturated roads, all harm the ability of aUckland to sustain the rising numbers return to NZ.

    Are you sure Key is a good ,anager of the economy?

  11. Tracey 11

    because house prices in auckland are out of control interest rates will go up not down. wouldnt down be more helpful to farmers with loans?

  12. Andrea 12

    Tax take down?

    Could lightning strike twice?

    ‘The government has passed under urgency, with the total endorsement of ACT, a 2.5% increase in GST to take effect just in time for the start of the 2015 school year’.

    ‘Just temporary, people! You know we have to pay the bills like any household would.’

    Yeah. Right.

Recent Comments

Recent Posts

  • Prime Ministers’ meeting reaffirms close trans-Tasman relationship
    Prime Minister Chris Hipkins and Australian Prime Minister Anthony Albanese today held their first bilateral meeting in Canberra. It was Chris Hipkins’ first overseas visit since he took office, reflecting the close relationship between New Zealand and Australia. “New Zealand has no closer partner than Australia. I was pleased to ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • Immediate humanitarian support to Türkiye and Syria following earthquakes
    New Zealand will immediately provide humanitarian support to those affected by the earthquakes in Türkiye and Syria, Foreign Minister Nanaia Mahuta announced today. “Aotearoa New Zealand is deeply saddened by the loss of life and devastation caused by these earthquakes. Our thoughts are with the families and loved ones affected,” ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Pākinga Pā site to be gifted back to local hapū
    An historic Northland pā site with links to Ngāpuhi chief Hongi Hika is to be handed back to iwi, after collaboration by government, private landowners and local hapū. “It is fitting that the ceremony for the return of the Pākinga Pā site is during Waitangi weekend,” said Regional Development Minister ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • New initiatives to unlock Māori science and research resources
    The Government is investing in a suite of initiatives to unlock Māori and Pacific resources, talent and knowledge across the science and research sector, Research, Science and Innovation Minister Dr Ayesha Verrall announced today. Two new funds – He tipu ka hua and He aka ka toro – set to ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Advancing our relationship in India
    Foreign Minister Nanaia Mahuta departs for India tomorrow as she continues to reconnect Aotearoa New Zealand to the world.  The visit will begin in New Delhi where the Foreign Minister will meet with the Vice President Hon Jagdeep Dhankar and her Indian Government counterparts, External Affairs Minister S. Jaishankar and ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government Northland housing investment to spark transformational change
    Over $10 million infrastructure funding to unlock housing in Whangārei The purchase of a 3.279 hectare site in Kerikeri to enable 56 new homes Northland becomes eligible for $100 million scheme for affordable rentals Multiple Northland communities will benefit from multiple Government housing investments, delivering thousands of new homes for ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government investment safeguards Waitangi Treaty Grounds
    The Government is supporting one of Aotearoa New Zealand’s most significant historic sites, the Waitangi Treaty Grounds, as it continues to recover from the impacts of COVID-19. “The Waitangi Treaty Grounds are a taonga that we should protect and look after. This additional support will mean people can continue to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Battle of Ohaeawai remembered
    A memorial event at a key battle site in the New Zealand land wars is an important event to mark the progress in relations between Māori and the Crown as we head towards Waitangi Day, Minister for Te Arawhiti Kelvin Davis said. The Battle of Ohaeawai in June 1845 saw ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • More Police deployed to the frontline
    More Police officers are being deployed to the frontline with the graduation of 54 new constables from the Royal New Zealand Police College today. The graduation ceremony for Recruit Wing 362 at Te Rauparaha Arena in Porirua was the first official event for Stuart Nash since his reappointment as Police ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Further support for upper North Island regions hit by significant weather
    The Government is unlocking an additional $700,000 in support for regions that have been badly hit by the recent flooding and storm damage in the upper North Island. “We’re supporting the response and recovery of Auckland, Waikato, Coromandel, Northland, and Bay of Plenty regions, through activating Enhanced Taskforce Green to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • The Princess Royal to visit New Zealand
    Prime Minister Chris Hipkins has welcomed the announcement that Her Royal Highness The Princess Royal, Princess Anne, will visit New Zealand this month. “Princess Anne is travelling to Aotearoa at the request of the NZ Army’s Royal New Zealand Corps of Signals, of which she is Colonel in Chief, to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government and horticulture sector target $12b in exports by 2035
    A new Government and industry strategy launched today has its sights on growing the value of New Zealand’s horticultural production to $12 billion by 2035, Agriculture Minister Damien O’Connor said. “Our food and fibre exports are vital to New Zealand’s economic security. We’re focussed on long-term strategies that build on ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Cost of living support extended for families and businesses
    25 cents per litre petrol excise duty cut extended to 30 June 2023 – reducing an average 60 litre tank of petrol by $17.25 Road User Charge discount will be re-introduced and continue through until 30 June Half price public transport fares extended to the end of June 2023 saving ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • More Kiwis in work as rising wages match inflation
    The strong economy has attracted more people into the workforce, with a record number of New Zealanders in paid work and wages rising to help with cost of living pressures. “The Government’s economic plan is delivering on more better-paid jobs, growing wages and creating more opportunities for more New Zealanders,” ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government boosts fund for Auckland flooding
    The Government is providing a further $1 million to the Mayoral Relief Fund to help communities in Auckland following flooding, Minister for Emergency Management Kieran McAnulty announced today. “Cabinet today agreed that, given the severity of the event, a further $1 million contribution be made. Cabinet wishes to be proactive ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Cabinet focused on bread and butter issues
    The new Cabinet will be focused on core bread and butter issues like the cost of living, education, health, housing and keeping communities and businesses safe, Prime Minister Chris Hipkins has announced. “We need a greater focus on what’s in front of New Zealanders right now. The new Cabinet line ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Prime Minister to meet with PM Albanese
    Prime Minister Chris Hipkins will travel to Canberra next week for an in person meeting with Australian Prime Minister, Anthony Albanese. “The trans-Tasman relationship is New Zealand’s closest and most important, and it was crucial to me that my first overseas trip as Prime Minister was to Australia,” Chris Hipkins ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government makes first payment to Auckland Flooding fund
    The Government is providing establishment funding of $100,000 to the Mayoral Relief Fund to help communities in Auckland following flooding, Minister for Emergency Management Kieran McAnulty announced. “We moved quickly to make available this funding to support Aucklanders while the full extent of the damage is being assessed,” Kieran McAnulty ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government steps up to assist Auckland during flooding
    As the Mayor of Auckland has announced a state of emergency, the Government, through NEMA, is able to step up support for those affected by flooding in Auckland. “I’d urge people to follow the advice of authorities and check Auckland Emergency Management for the latest information. As always, the Government ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Poroporoaki: Titewhai Te Huia Hinewhare Harawira
    Ka papā te whatitiri, Hikohiko ana te uira, wāhi rua mai ana rā runga mai o Huruiki maunga Kua hinga te māreikura o te Nota, a Titewhai Harawira Nā reira, e te kahurangi, takoto, e moe Ka mōwai koa a Whakapara, kua uhia te Tai Tokerau e te kapua pōuri ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Enhanced Task Force Green Approved following Cyclone Hale
    Carmel Sepuloni, Minister for Social Development and Employment, has activated Enhanced Taskforce Green (ETFG) in response to flooding and damaged caused by Cyclone Hale in the Tairāwhiti region. Up to $500,000 will be made available to employ job seekers to support the clean-up. We are still investigating whether other parts ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • General Election to be held on 14 October 2023
    The 2023 General Election will be held on Saturday 14 October 2023, Prime Minister Jacinda Ardern announced today. “Announcing the election date early in the year provides New Zealanders with certainty and has become the practice of this Government and the previous one, and I believe is best practice,” Jacinda ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Prime Minister Jacinda Ardern announces resignation
    Jacinda Ardern has announced she will step down as Prime Minister and Leader of the Labour Party. Her resignation will take effect on the appointment of a new Prime Minister. A caucus vote to elect a new Party Leader will occur in 3 days’ time on Sunday the 22nd of ...
    BeehiveBy beehive.govt.nz
    3 weeks ago