Treasury has shown that the Coalition Government has a $7.5 billion surplus, which is $4 billion higher than what was expected in the 2019 Budget unveiled last May. It is also $2 billion higher than the actual surplus unveiled this time last year, and at a size that has not been seen since at least before the 2008 Global Financial Crisis.
Their numbers also show that the net Government debt, as a percentage of GDP, continues to fall. At 19.2 per cent, the Coalition Government is well short of its self-imposed Budget Responsibility Rules to keep debt as a percentage of GDP at less than 20 per cent.
The high surplus and low debt levels prove that the economy is in good shape, and is indicative of the responsible fiscal management of the Coalition Government. Finance Minister Robertson also hinted that this could indicate more government spending to boost the economy, as recommended by Reserve Bank Governor Adrian Orr.
That increase in spending could amount to “record investments in health and education”, as the Finance Minister was quoted in the New Zealand Herald.