Growth delivers $2.6 billion surplus this year

3.05pm

Finance Minister Michael Cullen has unveiled a Budget with a $2.6 billion surplus this year and aiming for a $2.3 billion for 2003.

The Budget also forecasts strong surpluses continuing.It estimates the Government will a $3 billion surplus in 2004, $3.9 billion in 2005 and $4.2 billion in 2006.

Dr Cullen said the economy's GDP (Gross Domestic Product) was growing at a rate of 3.1 per cent.He forecast continuing growth: 3.1 per cent in 2003, 3 per cent in 2004, 2.9 per cent in 2005 and 2.8 per cent in 2006.

While the figures are impressive, they do fall short of the 4 per cent growth that Dr Cullen set in February to lift the country into the top half of the OECD - the list of developed nations.

Asked by reporters when he forecast the country would reach the 4 per cent level, he said "I haven't put a date on it."

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