1. Question No. 1—FinanceINGRID LEARY (Labour—Taieri) to the Minister of FinanceORAL QUESTIONSQUESTIONS TO MINISTERSQuestion No. 1—Finance1. INGRID LEARY (Labour—Taieri) to the Minister of Finance: How is the Government responding to changing economic conditions in New Zealand and globally?Hon GRANT ROBERTSON (Minister of Finance): The Reserve Bank in its Monetary Policy Statement is forecasting the economy will grow robustly in the second half of 2022 and the first quarter of 2023 by a collective 1.8 percent for a period of negative growth totalling 1 percent GDP. Global growth forecasts continue to deteriorate and the IMF is expecting economies either to be in recession or be in conditions that feel as if they are next year. We have consistently acknowledged that 2023 is going to be a tough year for New Zealanders facing global cost of living pressures and rising interest rates. As we clearly signalled in May's Budget we are cutting our cloth on the pathway back to surplus. Government spending as a percentage of GDP is forecast to fall considerably over the coming year from 35 percent to 31.6 percent.Ingrid Leary: What does Budget 2022 say about the impact of Government spending on the economy?Hon GRANT ROBERTSON: The Treasury's measurement of the impact of Government spending is the fiscal impulse—this is forecast to turn negative in 2022-23 and remain so throughout the remainder of the forecast period. This indicates that the Government is forecast to contribute less to aggregate demand each year than in the previous year. It is clear that 2023 will be a difficult year. Our approach has put New Zealand in a strong position to deal with the challenging global environment and its impact on New Zealand. We will continue to strike a balance of responsibly managing our finances targeting support to where it is needed the most and investing in a resilient economy.Ingrid Leary: How else is the Government responding to the changing economic landscape?Hon GRANT ROBERTSON: We continue to prioritise our spending so we target support to where it is needed most without exacerbating inflation. For example we're easing cost of living pressures for a number of New Zealand families by improving access to and the value of childcare assistance. Over one-half of all New Zealand families with children will now be eligible for subsidised childcare assistance and over 10000 additional children eligible for support.Ingrid Leary: What approach is the Government adopting in regard to fiscal policy as economic conditions change in New Zealand and globally?Hon GRANT ROBERTSON: We will continue to take a long-term and careful approach to fiscal policy. More than ever a consistent and balanced response is important to provide the certainty that is needed in a volatile environment. This is what got New Zealand through the one-in-100-year economic shock of COVID better than most and puts us in a strong position to deal with the challenges ahead. This is the time for calm heads and measured responses. It is not the time for knee-jerk responses and policy U-turns which leave New Zealanders confused and unsure and lowers trust on the path forward as we navigate this challenging time.