O'Connor Simon: Oral Questions — Questions to MinistersText is incorporated into the Bound VolumeO'Connor Simon: Oral Questions — Questions to Ministers[Sitting date: 17 February 2015. Volume:703;Page:1592. Text is incorporated into the Bound Volume.]3.SIMON O’CONNOR (National—Tāmaki) to the Minister of Finance: What announcements has the Government recently made about Budget 2015?Hon BILL ENGLISH (Minister of Finance): Last week I announced that Budget 2015 will be delivered on Thursday 21 May. It will show the Government’s ongoing commitment to protecting the most vulnerable New Zealanders restraining spending and ensuring that our public finances continue to improve and that our economy becomes more productive and yields higher incomes for New Zealanders. We have made good progress on all these areas and we would expect to make further progress in Budget 2015 including on supporting Christchurch’s rebuilding.Simon O’Connor: What progress has been made in achieving the Government’s fiscal goals?Hon BILL ENGLISH: We have made steady progress over recent years to the point where the deficit has shrunk significantly from a peak of 9 percent of GDP. Net core Crown debt is expected to peak in the current fiscal year at 26.5 percent of GDP and then reduce to under 20 percent by 2020. A residual cash surplus is now expected in 2017-18 a year earlier than previously forecast. We could of course have made more rapid progress on reducing deficits and reducing debt but the Government has pursued a balanced fiscal policy protecting the most vulnerable New Zealanders maintaining public services improving the management of spending and gradually moving towards a fiscal surplus without major disruption.Simon O’Connor: How will Budget 2015 contribute to achieving the Government’s fiscal goals?Hon BILL ENGLISH: That is under discussion right now as we move into the Budget process. But I will continue to implement those features of the Government programme that have turned out to be pretty successful and that is continued restraint across public services a strong focus on those factors that drive our spending particularly the New Zealanders with the most complex problems and continued investment in the kinds of innovation that is leading to more economic growth and more jobs. We have an unusual situation this year though where we have solid economic growth but remarkably low inflation. This is restricting the growth of the tax base and therefore Government revenue. This will pose a particular challenge through this Budget round.Simon O’Connor: How is the Government’s commitment to responsible fiscal management contributing to its wider economic programme?Hon BILL ENGLISH: If the Government can continue to provide better public services with the same or less money it benefits everybody. It removes pressure in a growing economy that might flow through to higher inflation and higher interest rates and the Government has contributed in that respect to mortgage rates which are currently just above 50-year lows benefiting every household in New Zealand that has a mortgage. Along with the Government’s programme of microeconomic reform through the Business Growth Agenda this is helping to create conditions where business is confident in investment. We see business investment growing and in the long run that is what underpins higher incomes and sustainable jobs.