Talk Money: October 15, 2015

  • 15/10/2015
(Paul Henry)
(Paul Henry)

The Government has achieved its first surplus, but it could be short-lived.

A higher than expected tax take helped the Government achieve a $414 million surplus. Officials had predicted a deficit of $684 million.

But economists are warning the economy is slowing and that could make it hard to achieve a surplus next year.

The slowing economy is likely to lower tax revenue.

That means the Government is not planning any big increases in spending. It also means it is not prepared to commit to bringing forward tax cuts that are planned for 2017.

Watch the video for the full Talk Money segment.