Latest news with #BudgetDay
NZ Herald
4 days ago
- Business
- NZ Herald
Budget boosts for disability sector but gaps remain
Finance Minister Nicola Willis on Budget Day. Photo / NZME The Budget giveth and the Budget taketh away! Its impact on some sectors was resounding but in the disability sector it was somewhat subtle. Residential Services had a much-needed injection of $60 million a year over the next four years. This will end the freeze on pricing that was
News18
6 days ago
- Business
- News18
One-Day Ban On Indian Vehicles Triggers Traffic Chaos At India-Nepal Border
Last Updated: The sudden shutdown has frustrated traders and locals along the border, hitting cross-border trade hard, especially in parts of Uttar Pradesh and Bihar In a move that has caused significant disruption, the Nepal government has decided to close all customs offices for a day in observance of its budget day. This decision has brought the movement of Indian vehicles at the India-Nepal border to a complete standstill, leading to long queues and considerable inconvenience for Indian tourists and traders. The closure may also impact the historically strong ' Roti-Beti ' relationship and trade relations between the two nations. The suspension of Nepal's customs operations has prevented Indian vehicles from completing the necessary road permit and customs formalities to cross the border, resulting in the halt of vehicles with Indian number plates. Border officials have clarified that the closure is temporary and that normal activities will resume the following day. However, the sudden shutdown has caused frustration among traders and local residents along the border, particularly affecting trade in Uttar Pradesh and Bihar. An Indian trader stranded at the border expressed concerns over financial losses due to the inability to transport goods into Nepal. Tourists have also been inconvenienced by the abrupt closure, which has disrupted their travel plans. This situation raises questions about the recent statements made by Nepal's Tourism Minister, Badri Prasad Pandey, who had discussed the implementation of an integrated system to facilitate Indian tourists. The open border and close cultural ties between India and Nepal have historically allowed citizens to visit each other's countries without a visa. However, customs duties and road permit regulations still apply. In recent years, Nepal has increased customs duties on Indian vehicles, such as the hike in 2019 from Rs 113 to Rs 150 for two-wheelers. In 2024, a new rule requiring Indian vehicles to pay an additional Rs 1600 for road permits was met with opposition from traders. Earlier the India-Nepal border was completely closed in 2020 during the COVID-19 pandemic, causing significant difficulties for traders and citizens. Additionally, border disputes such as the one over Kalapani have strained relations. While the tradition of closing customs offices on Nepal's Budget Day is not new, its impact is more pronounced this year due to stricter security and inspection processes at the border. First Published: May 29, 2025, 10:54 IST
Newsroom
27-05-2025
- Business
- Newsroom
Wellbeing provisions to be stripped from Public Finance Act
Wellbeing requirements added to the Public Finance Act by the previous Labour government will be removed by the coalition Government, with amendments introduced to Parliament under urgency on Budget Day. The changes, which had their first reading late on Saturday and have been referred to a select committee for a standard process, would end the consideration of non-monetary factors such as loneliness, mental health or housing quality when governments craft their Budgets.
Newsroom
27-05-2025
- Business
- Newsroom
Calls grow louder for Reserve Bank to cut rates by 50pts
As another Budget Day is consigned to the history books, the focus again turns to the Reserve Bank's latest assessment on the state of the economy. The central bank also faces an opportunity of its own: to match the Government's so-called 'growth' rhetoric with a super-charged rate cut of its own. Who wouldn't want to see a rate cut surprise this Wednesday? More than a few business leaders will no doubt have spent the weekend turning over in the minds how they might take advantage of the Government's new 'Investment Boost' scheme incentivising business with generous tax rebates on capital purchases. It was a welcome bright spot on an otherwise dismal budget outlook that reinforced how little room the Government has to manoeuvre currently. Not that the scheme will move the needle on the economy by that much. Finance Minister Nicola Willis estimates a 1 percent boost at best. But it's a start. If there was one very obvious theme emerging from Thursday's budget it had to be the fact that future government surpluses now largely appear to be a thing of the past and any that are forecast five years hence will barely be worth the paper they're written on. Political historians will also have noted the rich irony that it was former National Party leader Robert Muldoon who, as opposition leader in the run up to the 1975 election, accused then Prime Minister Bill Rowling of adopting a 'borrow and hope' mentality when it came to Labour's plans for the economy. 'I'm frustrated . . . at the lack of understanding of what Kiwi businesses were going through out there. The time for easing was the beginning of 2024, not the end of 2024. We're a bellwether and we've had more clients go into receivership or liquidation in the last 12 months than in any of the other cycles.' Steve Bonnici, Urgent Couriers Now it seems both sides of politics are united in their belief that we just have to keep on borrowing and hoping that things will improve – eventually – as the numbers continue to grow exponentially and become ever more eye-watering. Gross government debt is now projected to increase by $73 billion by 2029 according to Treasury's latest forecasts and servicing that debt will now cost an additional $3.6b more over the next four years. Bond yields will rise But what seems to be unrealistically optimistic in the forecasts is the assumption that the yield on New Zealand 10-year government bonds will ease to 4.3 percent next month and remain relatively unchanged at that rate for the next four years. As of Friday, the rate stood at 4.7 percent. Just take a look at US Treasury yields last week to get a taste of what might be around the corner. The US 20-year bond soared past 5 percent for the first time since the 2007/08 Global Financial Crisis. Investors are demanding a higher return for the risk they are taking on. This is quickly becoming a universal trend on bond markets globally. Which brings us to this week's official cash rate decision by the Reserve Bank. The central bank's last decision on April 9, just a week after US President Donald Trump's Liberation Day tariff announcements had financial markets in a tailspin and just a few weeks after the shock departure of former Reserve Bank governor Adrian Orr, leaves his replacement Christian Hawkesby with an opportunity to now stamp his own mark on monetary policy. It's time to return to the double 50 point cuts says Kiwibank chief economist Jarrod Kerr. 'The economic developments since the Reserve Bank's last monetary policy statement have deteriorated here, and especially offshore. The justification of a more 'go for growth' focused Reserve Bank has strengthened. Hawkesby (hopefully Dovesby) could easily deliver a 50 basis point move this Wednesday and signal another 50 point move to 2.5 percent to come. That would set policy about right for a recovery.' Let's stop delaying the inevitable with these overly cautious 25 basis point moves, Kerr says. 'A more decisive Reserve Bank would be viewed positively by everyone, particularly given the difficulty the Government had in balancing its budget this year. Next year's is likely to be even more difficult,' he argues. 'If, however, Hawkesby decides to play the 'nightwatchman', then we may just get a 25 basis point cut and little else. That's precisely what we don't need and we'd argue it would show an Reserve Bank out of touch with our economic reality.' In his official cash rate preview, Kerr also quotes a recent guest on Kiwibank's weekly podcast to illustrate his point. 'We're a bellwether' Urgent Couriers' managing director Steve Bonnici said he feel the ups and downs of the economic cycle before most. When asked about the current cycle and the Reserve Bank monetary policy actions, Bonnici said: 'I'm frustrated . . . at the lack of understanding of what Kiwi businesses were going through out there. The time for easing was the beginning of 2024, not the end of 2024. We're a bellwether and we've had more clients go into receivership or liquidation in the last 12 months than in any of the other cycles (back to the 1980s).' Kerr said Bonnici's comments are reflective of what he's hearing from the vast majority of Kiwi businesses who continue to struggle. As to what he expects the Reserve Bank will do on Wednesday, versus what he would like them to do, Kerr says a 25 point cut accompanied by a lowering of the official cash rate track would be a likely compromise. 'Currently, most economists sit between a low of 2.5 percent (Kiwibank) and a high of 3 percent. This scenario will push most economist forecasts below 3 percent to a 2.5-2.75 percent range. ' The wholesale rate markets currently imply an official cash rate terminal rate of 2.85-2.9 percent. We should see a (very) slight reduction in rates, supporting current mortgage rates. The variable and 6 month rates would move lower, but the 1 year and beyond wouldn't move much at all. However, that's not what we need either.' Kerr says the Reserve Bank's current trajectory is unlikely, in his view. 'Get to neutral, and get the economy moving. Ultimately, it's better to act swiftly and decisively to get lower rates feeding through faster. More meaningful cuts are required here and now.' Now we wait until Wednesday for the official verdict. Coming up this week Monday Residential Mortgage Lending (April) – RBNZ Turners Automotive – Full year result Kiwi Property – Full year result E-Road – Full year result Tuesday NZ Institute of Economic Research Quarterly Predictions Asset Plus – Full year result Wednesday RBNZ Monetary Policy Statement Business Count indicators – Stats NZ Employment indicators – Stats NZ F&P Healthcare – Full year result Rakon – Full year result Infratil – Full year result Smartpay Holdings – Full year result Thursday ANZ Business Outlook Mainfreight – Full year result Ryman Healthcare – Full year result Goodman Property Trust – Full year result Trade Window Holdings – Full year result Marsden Maritime Marine – Special Meeting Friday
Otago Daily Times
26-05-2025
- Business
- Otago Daily Times
'Jacinda got it right': Willis hits back at Budget Day dress critics
Finance Minister Nicola Willis (centre) on Budget Day wearing a blue dress believed to be from the British womenswear label The Fold London. Photo: RNZ Finance Minister Nicola Willis says there are "far more interesting things to talk about" than what clothes she wears. Willis delivered last week's Budget in a blue dress, believed to be the Nouvelle Sculpt Stretch Crepe Dress, from British womenswear label The Fold London, according to The New Zealand Herald. Caroline Marr, owner of Auckland-based fashion brand The Carpenter's Daughter, told the Herald that Willis' decision not to wear a Kiwi brand during the high-profile moment was a signal of "total disrespect" to the local fashion industry. "We have wonderful designers here, Jacinda [Ardern] got it right by wearing NZ-made as much as possible. Our leaders should also be doing that. Be proud of your nation and what we make here." Speaking to Morning Report on Monday, Willis dismissed the question. "Your audience are smart people. We've got far more interesting things to talk about than what clothes I wear," she said. "Let's focus on the policies. This line of questioning as far as I'm concerned belongs in the 1950s." National's Hutt South MP Chris Bishop defended Willis on social media, and shared what he was wearing to a post-Budget debate on Saturday. "There's been a lot of interest from The New Zealand Herald as to what our Minister of Finance was wearing on Budget Day, but nobody has asked me", Bishop said. "This tie, I actually got in France... this shirt is a classic New Zealand 3 Wise Men blue shirt, the suit is from Harford - down on Lambton Quay - and I'm pretty sure it's a Rembrandt suit, of course from Lower Hutt, wonderful place. This is a New Zealand Music Month badge... the socks... I think they might be a standard issue black H&M pair of socks, and the shoes... I think they're from 3 Wise Men as well." Whanganui MP Carl Bates also shared what he was wearing in a video posted to Instagram on Saturday, with the caption: "The reason I am posting this is that we have been under urgency, working hard to deliver our growth budget, but for some reason there was a focus on what the Minister of Finance was wearing."
