External review into the quality of the Treasury's fiscal policy advice

The Treasury has commissioned an independent external review into the quality of the department's fiscal policy advice over the last decade, Treasury Chief Economist and Deputy Secretary, Dr Girol Karacaoglu, said today.

"It is almost twenty years since fiscal responsibility provisions were enacted into New Zealand law. The provisions, which specify a set of principles underpinning responsible fiscal management and which require regular public reporting by governments on their intentions and objectives for fiscal policy, have informed fiscal policy decision-making in New Zealand ever since.

"While New Zealand institutions have performed well over this period and are well regarded internationally, the Treasury wishes to constantly scrutinise and improve our performance in order to maintain our position at the forefront of fiscal policy management and advice," Dr Karacaoglu said.

"The Review will bring an international perspective to this, so that we can learn from what other countries do to ensure high quality expenditures and ever-improving public services," he said.

The Review will be conducted by Teresa Ter-Minassian, a former Director of the Fiscal Affairs Department at the International Monetary Fund.

"I see this Review as part of the Treasury's commitment to ensuring that the quality of its advice is up to scratch and open to lessons from other countries. I also see it as an example of the Treasury not being afraid to being put under the spotlight by one of the world's renowned specialists in the field as we must always be open to evidence and to independent scrutiny," he said.

The Review, along with the Treasury’s response to its findings, will be published before the end of the fiscal year, 30 June 2014. The Terms of Reference for the Review are available on the Treasury website.

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