In today's email we followed up the HYEFU highlights.
Rod Oram took a close look at the Treasury's fresh forecasts to find some reassuring scenarios. But he points overseas to the risks around Donald Trump and a frothy stockmarket as factors that could turn the Goldilocks view on its head.
The new Government's self-imposed debt target is limiting its ability to borrow to fix growing infrastructure deficits. Bernard Hickey reports it will be forced into fancy and expensive financing tools such as PPPs and infrastructure bonds.
1. Grant's Budget belt big enough -- just
Treasury has gone through the Labour-led Government's policies with a fine tooth comb teasing out where costs will increase, and listed them as "policy change risks."
The new Government has unveiled a Budget outlook that fits its big health, education, transport and welfare spending plans within its self-imposed restrictions to reduce debt and keep running surpluses.
The Government's flagship families package will be introduced essentially as planned, with a few tweaks.
In today's email we looked into China's "more muscular approach" on the world stage and what it might mean for New Zealand.
Speaking on the eve of this Thursday's key Half Yearly Economic and Fiscal Update, Finance Minister Grant Robertson has emphasised his direction to ministers to cut spending in unwanted areas to ensure the Government meets its fiscal responsibility rules.
In today's email we looked into how the new Government's unallocated capital spending is being eaten away by unexpected dead rats left by the departing Government.