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The government says driving economic growth is it's number one priority. Finance Minister Nicola Willis will deliver her second budget on May 22, promising "bold steps to support economic growth, including measures to address New Zealand's long-standing productivity challenges."
However Treasury has pointed out the now structural deficit in the government's books is currently set to be addressed by cuts to per-person spending virtually unprecedented in modern times. Looking beyond the immediate challenges, Treasury is warning pressure on future governments' budgets, from demographic change, has worsened on projections from ten or twenty years ago.
Kathryn speaks with Treasury's Chief Economics adviser Dominick Stephens.
