"Budget 2013 enhances the momentum that is building across the New Zealand economy"
-Bill English, Finance Minister
New Zealand's government pledged to return the nation's budget to a surplus in 2015, meaning it will be the first in seven years, as rebuilding earthquake-devastated Christchurch city boosts economic growth in the country as well as tax revenue. The government forecasts the operating surplus of NZ$75 million ($62 million) in the year through June 2015, up from a previously estimated NZ$66 million. At the same time, the balance will improve from a NZ$6.29 billion deficit in the year ending June 30, 2013, as the government introduces new measures to limit debt. The report from the Treasury Department also showed that the economy will expand 2.8% in 2014-15, up from 2.3% in 2013-14, helped by earthquake-related investment.
"The budget is in line with expectations as to the path toward balance," Steven Hess, Senior Vice President, Moody's Investors Service, wrote in an e-mailed note from New York. "Thus, it does not change our view of the country's creditworthiness."
"Budget 2013 enhances the momentum that is building across the New Zealand economy," Finance Minister Bill English said. "That momentum can be seen in some recent favourable data and can be felt in a growing sense of confidence and security about our economic position."
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