Oh to be a Kiwi! Air New Zealand making record profits and a Government in surplus....Time to emigrate....Tax cuts as well!
An economic expansion that delivers the possibility of future tax cuts and some more new spending is forecast in the New Zealand budget.
Annual gross domestic product (GDP) will average 2.8 per cent during the next four years, peaking at four per cent in the year to March 2015.
But there is no relief for exporters as the NZ dollar stays high for the forecast period and home owners can expect interest rates to rise.
The growth delivers budget surpluses, starting with a bigger-than-expected $NZ372 million ($A346.32 million) next year and rising to $NZ3.5 billion in 2017/18.
"Spending restraint and a growing economy have led to a remarkable turnaround in the books," Finance Minister Bill English says.
The government will be able to consider "modest tax reductions in future years," he says
In stark contrast to Australia, the economy is running in the right direction and, Mr English says, it's because the National-led government has managed it well since being elected in 2008.
The economic expansion is bringing in more money and years of zero budgets, when new spending has been found from savings elsewhere, has helped core crown expenses to fall to 31 per cent of GDP in 2013/14 from 35 per cent in 2010/11.
Core crown spending is forecast to fall to 30 per cent of GDP by 2016/17.
Some choices have been made.
The signalled $NZ1b of new spending in this budget rises to $NZ1.5b in 2015 and grows thereafter to two per cent per budget.
Mr English says Treasury advises that's the upper limit of what's possible to "keep the pressure off interest rates".
Contributions to the New Zealand Super Fund, essentially savings by the government, were halted in Mr English's first budget. They will resume when net government debt falls to 20 per cent of GDP, projected to be in 2019/20.
There's room for some tax cuts already. ACC levies, to fund worker compensation, fall by $NZ480m in 2015/16, depending on the outcome of a public consultation.
The stronger economy had created 84,000 new jobs in the past year and wages would rise, Mr English said.
The budget projects the average wage to rise by $NZ7600 to $NZ62,300 during the next four years.
"A broad-based economic recovery is now established," Mr English said.