Editorial: Still waiting on promise of surplus

Bill English. Photo / Warren Buckland

Toward the end of this month, Finance Minister Bill English will stand up in Parliament and deliver his seventh Budget speech.

This is the annual statement in which the Government tells us how it has managed our finances and also reveals how it plans to grow our economy.

Last year, Mr English had some very good news - the National Government was on track to deliver on its promise of returning the country to surplus in the 2014-15 financial year.

However, at the weekend - nearly a year on from that speech - Mr English confirmed that would not be the case and the first surplus the country could expect since 2008 had been adjusted to 2015-16.

When the Government's books were opened at the half-year point in December last year, the indication was the forecast in last year's Budget of a $372 million surplus was more likely to be a $570 million deficit and the first surplus, about $565 million, would be in 2015-16. Now Mr English tells us even those forecasts have deteriorated.

Certainly the National Government has done well in many regards, especially considering it took office when the 2008 Global Financial Crisis hit our economy. John Key's Government was also left with the task of dealing with the Christchurch earthquakes and the massive rebuild of that city.

But the point is that Mr Key and Mr English have been telling us for quite a while now - even before the last election - that this country is in better financial shape than it actually is.

Put simply, these are good economic times and government finances should be in a better state. Now Mr Key is signalling there could possibly be tax cuts in 2017.

Let's get to surplus first, before any more promises are made.