Crown accounts in good shape, could be better

Tuesday, November 4th, 2008

Crown accounts in good shape, could be better

Treasury forecasts have again underestimated the strength of the Crown Accounts, this time by $1.7billion for the three months to 30 September, the Employers & Manufacturers Association (Northern) points out.

"Taxation has been running so high for so many years, that despite the government hiring 10,000 more highly paid officials the government's accounts are in good shape," said Alasdair Thompson, EMA's chief executive.

"What's equally surprising is that the government has been increasing expenditure without achieving productivity gains, such as in health, with a net financial asset surplus over liabilities equal to 5.7% of GDP.

"The next government's objective must be to focus on driving the private sector's productive growth, especially in exporting, as the way to increasing New Zealanders' standard of living."

ENDS

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