Foster-Bell Paul: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeFoster-Bell Paul: Oral Questions — Questions to Ministers[Sitting date: 22 October 2015. Volume:709;Page:7502. Text is incorporated into the Bound Volume.]3.PAUL FOSTER-BELL (National) to the Minister of Finance: How is the Government’s economic plan managing the challenges presented by low inflation and the outlook for the global economy?Hon PAULA BENNETT (Acting Minister of Finance): The current mix of lower dairy prices low inflation and a weaker global economic outlook means lower expected growth in tax revenues for the Government despite rising real wages for New Zealand households. The Government’s plan in response to this weaker outlook for revenue growth is to focus on managing expenditure. We are working to make each dollar go further rather than cutting spending or services.Paul Foster-Bell: What progress has the Government made in balancing its books in the past 5 years?Hon PAULA BENNETT: The Government has made good progress on balancing its books and getting back into surplus. In 2010-11 the Government recorded a deficit of $18.4 billion or 9 percent of GDP on the back of the global financial crisis and of course the Canterbury earthquakes. In the years following the Government recorded smaller deficits each year and last week the Government announced a $414 million surplus for the 2014-15 year. This met the target of course that we set in 2011. This result is due in part to the Government’s careful management of expenditure which has fallen from 34 percent of GDP in 2011 to 30 percent of GDP in 2015.Paul Foster-Bell: How will the Government’s prudent fiscal management help New Zealand manage future uncertainties?Hon PAULA BENNETT: Like many New Zealand households the Government has weekly obligations that it must meet and finances to balance. By analogy if the Government were the average New Zealand household it would have had an income last year of $90900 expenses of $90500 and a $400 surplus at the year end. This Government household would have debt of $76000 and it would be paying $59 per week in interest. So we are reasonably well positioned to weather future uncertainties. What is important is that we continue to work towards paying down that debt while continuing to meet our commitments to New Zealanders.Paul Foster-Bell: What recent reports has the Minister received on GDP per capita?Hon PAULA BENNETT: The Minister has seen a report from one high-profile economic commentator—I think he means Grant Robertson—suggesting GDP per capita is falling. Not everybody knows that there is more than one measure of GDP or that per capita GDP is generally measured on an annual basis. Like most statistics per capita GDP will fluctuate from quarter to quarter.David Shearer: Do you know what you’re saying?Hon PAULA BENNETT: You will learn something. On an annual basis GDP per capita is growing despite record high net migration. In the year to June per capita GDP at current prices grew 2.1 percent. In real terms it grew 0.4 percent. That commentator will also be assured by the—Mr SPEAKER: Order! That question is a marginal question. I suspect it was designed to attack the Opposition.