5 Mar 2021

Government's finances looking good, will it spend more?

From Morning Report, 8:29 am on 5 March 2021

New figures reveal the government's overall finances are in surplus of $3.3b against a forecast deficit of $11.1b.

A strong tax take and surprise repayments of the wage subsidy are among the reasons for the bolstered financial position.

So does this mean we can expect to see some big social spending in the Budget?

Sharon Zollner is ANZ chief economist and Eric Crampton is chief economist at the New Zealand Initiative.