Although it is far too early to get excited, there are signs that the economy may be coming out of its downturn. There has been a positive increase in economic growth in the last quarter. Business and consumer confidence has improved. Our major trading partners like Australia and the United States are also showing signs of growth.

However the road to recovery will be a bumpy one. The impact of the recession will be felt for sometime.

What is needed is sustained economic growth. The $16 billion of tax cuts to 1.5 million people has left more money in New Zealander's pockets. The streamlining of the Resource Management Act will make it easier to do business.

The focus of the 2010 budget will be on further step changes to encourage sustainable and long-term economic growth. This means cutting the red tape that restricts business growth and prosperity, investing in productive infrastructure, delivering better, smarter public services, lifting education standards, pursuing business innovation and ensuring the tax system promotes economic growth.

The budget in 2010 will be an important and challenging document.