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Govt 'will hit surplus target'

By Corin Dann

Published: 11:45AM Tuesday September 18, 2012 Source: ONE News

The Government is sticking by its goal of being back in surplus by 2014/15, despite economists predicting it will miss the target by a billion dollars.

The New Zealand Institute of Economic Research has compiled an average of economists' forecasts which have recently been made on the country's economic prospects.

The consensus forecast from the NZIER suggests the risks from a global economic slowdown are increased and that New Zealand won't get back to surplus by 2014/15.

It says it likely to be a billion dollars shy of breakeven in that budget year.

The Finance Minister Bill English says the economic forecasts show that it will be a challenge to get back to surplus, but it is still the Government's intention to do so.

Prime Minister John Key agrees the government is committed to meeting the surplus target, although he did note that Australia has recently indicated it may miss its surplus target given the slowing world economy.