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New Zealand’s economy remains one of the fastest growing in the developed world, confirming that the Government’s economic programme is taking New Zealand in the right direction, Finance Minister Bill English says.

The Government believes an OBEGAL surplus is achievable this financial year, despite Treasury’s latest forecast today predicting a $572 million deficit (0.2 per cent of GDP) for the year to 30 June 2015, Finance Minister Bill English says.

Government revenue continues to grow more slowly than forecast in the Budget, again highlighting the challenge of returning to surplus this year, Finance Minister Bill English says.

For the four months ended October 31, the operating balance before gains and losses (OBEGAL) deficit was $1 billion - $260 million larger than forecast in the Budget Economic and Fiscal Update in May.

Even though Core Crown tax revenue was $1.5 billion (or 7.9 per cent) higher than at the same time last year, it was $97 million lower than forecast in the Budget.

New Zealand households have together saved more than they spent over the past five consecutive years – the first time this has happened since 1989-94, Finance Minister Bill English says.

The latest revised annual National Accounts (Income and Expenditure) compiled by Statistics New Zealand show aggregate household savings – which includes the impact of debt repayment - totalled $2.8 billion in the year ended March 2014.

This represents a positive savings rate of 2.1 per cent of household disposable income.

Six iwi representatives have been appointed to the Whānau Ora Partnership Group Finance Minister Bill English and Minister for Whānau Ora Te Ururoa Flavell say.

“These iwi representatives are well-placed to contribute to the work of the group,” says Mr English.

The representatives, nominated by the Iwi Chairs Forum, are Raniera (Sonny) Tau, Naida Glavish, Rāhui Papa, Sir Mark Solomon, Dr Hope Tūpara, and Richard Steedman.

“We are delighted with the depth, wisdom, and iwi connections that these appointees bring,” says Mr Flavell.

New Zealand remains on track for solid economic growth, more jobs and rising incomes over the next few years, but falling dairy prices and low inflation will make returning to surplus this year challenging, Finance Minister Bill English says.

“Businesses and consumers are confident about the future, there’s a lot of activity in the manufacturing and service sectors, and companies are employing more people and paying higher wages,” he said in a speech to an ASB business breakfast in Auckland today.

The Crown accounts for the first three months of the current financial year are broadly consistent with forecasts, but at the same time highlight the challenge of returning to surplus, Finance Minister Bill English says.

For the three months ended September 30, the operating balance before gains and losses (OBEGAL) deficit was $725 million – $79 million more than forecast in Budget 2014.

The Government remains committed to its social investment approach to improve services for New Zealanders most in need, Finance Minister Bill English says.

“The Prime Minister has made clear that in this third term the Government will further focus on issues influencing children in material deprivation and hardship. Just as there are many and sometimes inter-related causes of hardship, there must also be multiple and sometimes inter-related strands to the solution. 

Cabinet has agreed on the details of the flag referendum process and every political party represented in Parliament has been invited to take part, say Prime Minister John Key and Deputy Prime Minister Bill English.

“Our flag is the most important symbol of our national identity and I believe that this is the right time for New Zealanders to consider changing the design to one that better reflects our status as a modern, independent nation,” Mr Key says.