A Budget for a sustainable, prosperous New Zealand

Finance Minister Michael Cullen will deliver his ninth Budget on 22 May.

“Under the Labour-led government, New Zealand is enjoying its longest period of economic expansion since World War II,” Dr Cullen said.

“We have record low unemployment, record high workforce participation, and household incomes that are 25 per cent higher than they were eight years ago.

“Budget 2008 will build on our success and take us towards a more prosperous and sustainable economy. It will invest in productivity, in innovation, in the strength of our communities and families, and in protecting our environment.

“Budget 2008 will include a programme of personal tax cuts, building on the $4 billion a year in tax relief for families, businesses, and savers that will be in place from 1 April.

“But in 2008, our economy faces considerable uncertainties. The downturn in the US economy is serious, global food and transport prices are rising quickly, our farmers are battling drought, and sharemarkets have lost significant values.

“Budget 2008 will be a Budget that takes these uncertainties seriously.

“It will show once again that it is Labour in government that can be trusted to manage our economy in difficult times, and it will show that we are serious about delivering even greater prosperity for New Zealanders.”