Akhir 12, 1432 / March 17, 2011, SPA -- The earthquake that devastated the city of Christchurch last month will add about $3.6 billion to New Zealand's budget deficit this year, raising it to 8 percent of gross domestic product, the government said Thursday. According to AP, Finance Minister Bill English said in a speech to a business group in Wellington that the deficit would rise to 12 billion New Zealand dollars ($16 billion) because of the quake, which struck Feb. 22, killed at least 166 people and ruined thousands of homes, offices and other buildings. English said government debt could exceed 30 percent of gross domestic product by June 2014, up from a forecast 28 percent and from 14 percent in June, 2010. New Zealand may not return to budget surplus until the 2015-2016 financial year, a year later than expected. «Meeting the government's share of the immediate earthquake costs will require a quite substantial front loading of Crown (government) debt in the next year or two,» English said. He said New Zealand's economy had the capacity to absorb the impact of the quake. The cost would be borne through borrowing and by diverting capital spending to Christchurch, not by raising taxes or cutting spending, English said.
