This year's Budget is reasonably enlightened, Wanganui business owner Myles Fothergill says.
Following it could get the New Zealand economy back into the black by 2014, Finance Minister Bill English said yesterday.
Mr Fothergill said that was optimistic, but credible.
"We are moving forward quite nicely."
It was clearly an election year Budget, in
that it had no major shocks, but it was also faithful to Government's long-term economic plan. The last Budget made some "pretty serious tax changes," Mr Fothergill said.
"There was always a risk that they would be tempted to claw back some of the tax they gave away at that Budget, but they haven't tried to do that."
He was pleased they still found $4 billion extra to spend on health and education.
The planned $250 million investment in KiwiRail would save wear and tear on roads, and the $942 million for ultrafast broadband was needed.
"Business needs it. It will give us significant strategic advantages," Mr Fothergill said.
The planned partial sales of state-owned energy companies Genesis, Meridian, Solid Energy and Mighty River Power, and of Air New Zealand, would be controversial, he said, but had to be done. "It gets back to generating cash flow and saving on borrowing. There's no choice."
From April 2013, employers will be expected to match employees' 3 per cent wage contribution to KiwiSaver - an increase of 1 per cent.
From April 2012, employers will be taxed on that contribution.
Mr Fothergill said that would make doing business a little bit tougher in an already tough time "but I guess everyone has to contribute towards the economic benefit".
He was pleased to have nearly two years to plan ahead for the KiwiSaver changes.
Wanganui Chamber of Commerce president Jenny Duncan agreed that given the recession and Christchurch earthquakes, belts needed to be tightened - but she hoped Government would rein in its own spending too.
"I hope they mirror what they expect from the rest of us - the BMWs being a case in point."
A firm believer in people looking after themselves, she had no problem with the cuts to Working for Families.
She was pleased with the spending increases in health and education, provided they were targeted well.
She also hoped cuts to the public sector would result in well thought-out efficiencies rather than reductions in services.
A 1 per cent increase in employer contributions to KiwiSaver would not have a huge impact on its own, she said.
"It's the cumulative effect of a variety of increases in a recession that really knock businesses around."
