Wellington - New Zealand's budget deficit is spiralling out of control as the country enters its sixth-consecutive quarter of economic contraction, Finance Minister Bill English warned Wednesday.
If growth in public expenditures is not checked, the deficits would hit 45 per cent of gross domestic product (GDP) in four years and an unsustainable 70 per cent by 2023, he told business leaders in Auckland.
Observers said the speech clearly paved the way for the conservative National Party-led government to cancel tax cuts for the next two years that it had promised in its successful campaign for election in November.