Budget on May 20 will deliver growth, jobs

Finance Minister Bill English today confirmed Budget 2010 will be delivered on May 20 and will set out important policies to lift economic growth and give hard-working New Zealanders incentives to get ahead.

"The Budget will be about taking action to grow the economy over the next five years and beyond," he said after updating the National caucus on the economy and the Government's priorities for 2010.

"It will build on the Government's substantial economic programme last year and give businesses the confidence to invest and create jobs.

"We've come through the recession in better shape than many commentators had predicted. That gives us an opportunity to differentiate ourselves from other countries in areas like tax reform, productive infrastructure investment and better public services.

"All of this is essential if everyday New Zealanders are to enjoy the incomes and living standards that give them opportunities to get ahead."

As it makes decisions for the Budget, the Government will consider several reviews - including the report last month of the Tax Working Group.

"As the Prime Minister has said, we want to create a tax system that strengthens the economy, rewards effort, reduces tax avoidance and keeps talented New Zealanders at home. We also want to tilt the economy towards exports and investment, and away from consumption and borrowing."

The Budget will be delivered against a backdrop of ongoing restraint, given the Government faces another six years of Budget deficits and net Crown debt will more than treble to a forecast $65 billion by 2014.

"It was entirely appropriate that the Government helped New Zealanders through the recession. Now we need to focus on fixing a damaged economy and restoring the Government's books."