19 Nov 2010

English not surprised by Treasury view on blanced Budget

7:44 am on 19 November 2010

Finance Minister Bill English says it's no surprise that the Treasury wants spending slashed to balance the Budget two years sooner than planned.

The Government expects its budget to get back into balance by 2016.

But the Treasury has advised the Government to reconsider automatic spending increases on KiwiSaver, indexation of benefits and tertiary education, so the Budget can be balanced by 2014.

Mr English told Morning Report there have been several major one-off costs, such as the collapse of South Canterbury Finance.

He said these can be absorbed while the Government works to get back to surplus in the next four to five years.