John Key seems to have lost his smiling assassin reputation, going all squeamish on addressing costs int eh public service as tax revenues fall.
Prime Minister John Key is pledging no cuts to public services in Bill English’s seventh Budget, despite low interest rates and falling prices carving billions from the Crown’s coffers over the next four years.
On May 21 Finance Minister English will release the Budget, which is expected to show National failing to hit its often repeated target of reaching surplus this year.
Although Key has not given up on reaching surplus when the final accounts for 2014/15 are released, he appeared to announce details of Treasury’s forecasts for this month’s Budget showing a squeeze on the tax take.
“The very factors that are helping households and businesses get ahead are making aspects of the Government’s finances more challenging,” Key told reporters at his weekly post Cabinet press conference on Monday.
“A combination of low inflation, low interest rates and lower dairy prices is slowing growth in government revenue.”