Formats and related files
The Treasury has released a report it prepared for the Minister of Finance in August 2009 in light of the goal of closing the income gap with other OECD countries, in particular with Australia by 2025. The purpose of the report is to set out the key economic issues and challenges facing the country at present.
The key intended message of the report was that, without a consistent package of major economic reforms, the economy was unlikely to close the income gap with Australia. Moreover, without these changes economic vulnerabilities facing the country could grow, but without any likely immediate consequence.
Economic reforms should include tax reforms to encourage savings, investment and work effort; regulatory changes to raise productivity; and reducing the level of government spending. A reduced level of government spending will help re-orientate the economy towards investment and exporting, as it should lower the risk of inflation, causing interest rates and the exchange rate to be lower than otherwise.
Deletions to Document
Some of the content of this document has been deleted where it is considered necessary to:
- protect the privacy of natural persons, including deceased people;
- avoid prejudice to the substantial economic interests of New Zealand;
- protect the confidentiality of advice tendered by Ministers of the Crown and officials; or
- maintain the effective conduct of public affairs through the free and frank expression of opinion.
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