Our View: No lolly scramble in Budget

In an election year, the presiding party in power normally hands out some lollies in an effort to retain power.
Not this time.
Labour did it when they handed out interest-free student loans to those living and working in New Zealand, and pipped the Don Brash-led National Party.
Following yesterday's austerity Budget - some called it the "Zero Budget" - the John Key-led National Party has decided to take a higher-risk path.
It is relying on its three-year performance (remember the tax cuts last year) and the popularity of Prime Minister Key to dominate the general election in late November.
The present government had to take control of ballooning borrowing and debt, just like households and farmers have done.
The Budget outlined reductions in government expenditure, made savings from Working For Families, KiwiSaver and student loans, planned to raise between $5 billion-$7 billion by selling minority shareholdings in Mighty River Power, Meridian, Genesis, Solid Energy and Air New Zealand, and shuffling some new funding, with health the main beneficiary.
Tauranga's Health Minister Tony Ryall, who keeps his head down, will be delighted.
The government couldn't continue borrowing at the rate of $380 million a week and even though the operating deficit will hit $16.7 billion this year, it proclaimed that the books will show a surplus in 2014/15. Finance Minister Bill English predicted, boldly, that growth would reach 4 per cent within two years.
But the Budget lacked a long-term economic goal. Where's the exporting incentives, the housing affordability plan and the answer to the debilitating leaky building issue?
The leaky building carnage could cost even more than re-building Christchurch, which Mr English set at $15 billion with an injection of $8.8 billion from government including ACC and EQC.
The National Party has been a little canny. All the Budget changes will take effect after the election, starting from April 1 next year. The voting public will be a little unsuspecting. Except one sector. Businesses. National will not have made many friends with businesspeople - their greatest supporters - by increasing the compulsory employer contribution for KiwiSaver from 2 per cent to 3 per cent and thus increasing the payroll, then taxing it. Another new tax.
Students, too, might not be happy. Those who rush overseas now have to start repaying their loans after one year instead of three years, and students over 55 years will only get loans for tuition fees.
The latest Budget had no sweeteners nor surprises. It was appropriate for the present economic situation.
But the National Government wasn't going to take one chance - it did enough fiscally to prevent a credit rating downgrade, and interest rates and the exchange rate will remain stable.
However, the November election will be a vote of confidence in the economic direction. "We continue to build a platform for a stronger and more ambitious New Zealand," said Mr English. We'll see.