After nine Budgets, two Rugby World Cup losses, a food crisis, bad polls, and with an election due...
KEY POINTS:
* The Government produces tax cuts, higher family credits and higher superannuation. To be passed today by Parliament and effective on October 1, pre-election.
* Even 'rich pricks' benefit: Top 39c rate from $70,000, not $60,000, while lowest rate drops from 15c to 12.5c and adjustments in between boost everyone's pocket. Taxpayers get $10.6b over three years, timing staggered to constrain inflation and interest rates.
* Government's books hit, with operating balance falling from 2.9 to 0.7% of GDP next year, but it promises to cut future spending through 'significant reprioritisation'.
* Most 2008 spending increases preannounced or predicted. KiwiSaver's popularity means bigger Government bill than expected and new $340m broadband policy focuses on businesses and institutions, not homes.
* 2009 looks challenging: Economic growth to fall sharply, from 3.1 to 1.5%, before rebounding.
