08 May 2018
Budget 2018 hasn’t failed to disappoint on numbers, according to ANZ chief economist Richard Yetsenga, with tax cuts for lower- to middle-income earners and surprising gains in revenue collection which have helped bring forward an expected return to surplus.
Speaking on video, Yetsenga said in a perfect world tax cuts should be affordable, efficient and effective and that the budget measures meet the criteria.
"You’d argue from an economic perspective if the government wanted some economic stimulus, it’s going to get some.”
‘You’d argue from an economic perspective if the government wanted some economic stimulus, it’s going to get some,” he said.
Despite the rosier forecast Yetsenga said there were still structural issues avoided by the budget – and that it seemed to lack an underlying plan.
“I don't want to get too pessimistic about the budget as it does have some good aspects,” he said, noting political realities meant real reforms were unlikely.
“Really the hurdle for the budget is that it does no harm,” he said. “This budget meets that test.”
Watch the video above to find out more.
Richard Yetsenga is Chief Economist at ANZ
You can read bluenotes’ full coverage of #Budget2018 HERE.
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.
08 May 2018
09 May 2018