Robertson finds extra $1.4b

Finance Minister Grant Robertson said this morning that the Government had found an extra $1.4 billion over the next four years from cost savings and extra tax revenues to help it fund its plans.

He said in a speech to a business audience in Auckland the May 17 Budget would deliver a surplus in 2018/19, and in subsequent years, and meet the Government's Budget Responsibility Rules.

"We owe it to future generations to be fiscally responsible, given the risks New Zealand faces in terms of natural disasters and global economic shocks," he said.

He said he had asked ministers to reprioritise their plans and over the last five months they had come up with savings worth $700 million over the next four years. He said the Government was also finalising work started by the previous government to ensure foreign and multi-national companies pay more tax in New Zealand.

“As a result of these changes to make our tax system fairer, and our initial reprioritisation drive, we have freed up about $1.4 billion of funding over the next four years which will be re-invested in this Government’s priorities."