This article was originally published on New Zealand Herald.
“…[New Zealand’s] Treasury this week took the first step towards producing a “well-being” Budget next year, working new measures into its 2018 Investment Statement. Under the Public Finance Act, the Treasury has to report every four years on the past, present and forecast future value of its assets and liabilities.
This year’s statement showed that the Government’s balance sheet was healthy and well-placed to handle adverse shocks. A net worth of $117 billion as at June 30, 2017, was forecast to rise to $160 billion by 2022.
But what made it interesting is that the 2018 version – He Puna Hao Pātiki – differs from the 2014 statement by using the organising principles in the Treasury’s Living Standards Framework. It includes a chapter on broadening the statement to include natural capital considerations.
This week Economy Hub talked to BERL chief economist Ganesh Nana about what well-being actually means to economists. Nana outlined the ” four capitals” approach that will determine Treasury’s approach to economic policy: financial capital, human capital, natural capital and social capital (including cultural capital)…”
Read on at: New Zealand Herald.