“This was the first of a three-year budget life cycle from a Government which is still coming out of crisis mode,” says
Deloitte Chief Executive Thomas Pippos.
The overhang of COVID-19 remains present in Budget 2021; accepting that Crown finances are surprisingly better than
expected and tracking very favourably against international comparisons.
“The New Zealand economy has continued to positively surprise pundits, showing much greater resilience and adaptability
than expected,” said Mr Pippos.
“As a consequence, Budget 2021 has seen a plethora of material spending. It’s hard to believe that a year ago economists
were talking about being in the midst of an economic and social calamity akin to the great depression of the 1930s,”
says Mr Pippos.
Spending decisions have been prioritised against objectives but as always there will be those who missed out and those
who didn’t get enough.
“Looking forward, the trajectory of the economy is seemingly quite positive, accepting concerns around inflation and
interest risks remain, and only time will tell how they play out,” concludes Mr Pippos.