Treasury to reveal fiscal forecast

  • 23/08/2017
The Pre-election Economic and Fiscal Update will be released around noon on Wednesday.
The Pre-election Economic and Fiscal Update will be released around noon on Wednesday. Photo credit: iStock

The Treasury is about to open its books and reveal how much money the next government can expect to have to spend, save or use to repay debt.

Wednesday's Pre-election Economic and Fiscal Update (PREFU) is a key part of the election process and gives parties projections they can use to finalise core policies.

Treasury Secretary Gabriel Makhlouf and Finance Minister Steven Joyce will present this election's PREFU, which will be released around noon.

It will indicate the amount of tax revenue that's anticipated over the next four years and the latest economic growth forecasts.

It's sure to be a positive picture, but just how positive won't be known until PREFU is released.

Treasury's half-year update, released last December, forecast steadily rising surpluses reaching $8.5 billion by 2020/21.

By the time Mr Joyce presented his first budget in May this year that had slipped to $7.2b by 2020/21, partly because of the government's family income package.

PREFU also forecasts job growth and the unemployment rate for the next four years.

NZN