Grant Robertson’s first Budget will demonstrate the scale of his challenge to meet election promises while staying within his self-imposed spending limits…
…Unless the Government decides to drop major spending plans or raise revenue through new taxes, it should quickly consider changing the commitment, or abandoning it altogether.
While still in opposition, the Wellington Central MP laid out a plan which would see debt, as a share of gross domestic product, fall to 20 per cent, over Labour’s first five years in office.
Labour is spending big, and Rutherford is correct when he says that Labour should consider changing their debt plans.
However, if you remember correctly, back in February, Robertson stated that the low level of public debt was “was the best thing about the New Zealand’s economy” (despite having criticised the level of debt during his time in opposition).
Now with his statement that public debt is in a comfortably low level, he’s in the green to scrap the debt objectives.
Smart move from the finance minster.