Government Debt soars past $160 billion – the time to slash spending has come
The Taxpayers’ Union is calling on all parties to commit to drastically slashing Government spending following today’s Pre-election Economic and Fiscal Update (PREFU) showing Government debt soaring past $160 billion*. By 2027, Net Core Crown Debt is expected to be more than $12 billion higher than forecast at the Budget Economic and Fiscal Update just four months ago.
Reacting to the PREFU announcement, Taxpayers’ Union Campaigns Manager, Callum Purves, said:
“It is clear that Grant Robertson has failed to sufficiently rein in wasteful spending to get the Government’s books back under control. Today’s figures show that the $4 billion in savings found by the Finance Minister are not enough to turn things around and debt continues to grow – we need more radical cuts.
“The books are now so bad that, on a per capita basis, the share of Government debt for a typical family of four is more than $123,000. The sustained levels of increased Government spending – 68% higher than in 2017 – punishes taxpayers twice. First, in the form of inflation which pushes up the cost of essentials, erodes savings and pushes kiwis into higher tax brackets, and secondly, in the form of higher taxes where all of the borrowed money eventually has to be paid back – with interest.
“Now is not the time for tinkering at the margins, New Zealanders need a clear pathway for the Government’s books to return to surplus and a focus on cutting wasteful spending and lowering tax to help drive the economic growth needed to raise the incomes and standard of living for all New Zealanders."