8 things that mattered this week
The last week has seen the Labour-led Government confirm it is not going to deviate far from National’s fiscal policies, and will continue to fund public services at similar levels. How do we explain this insistence on fiscal conservatism in the face of clear and urgent need, and growing calls for change? Victoria University’s Dr Bryce Edwards argues that the Finance Minister and his colleagues have become so immersed in pragmatic electoral calculations they’ve lost touch with the shift away from orthodox economics.
The news that matters this morning
Back by popular demand, here's the 8 things that mattered in our political economy in the (short) week that was, along with Weekend Reads at bottom.
National is ignoring the looming threat of rising superannuation costs and a changing climate. Thomas Coughlan argues its new leaders should look to the party’s history for solutions.
The head of the NZ Defence Force has signalled plans to cut back on spending and “reprioritise” resources in the coming years, which National fears could be a sign of further cuts to come.
The head of the Ministry of Foreign Affairs and Trade has made a blatant bid for more money in this year’s Budget - and it seems likely his prayers will be answered.
The new Government's self-imposed debt target is limiting its ability to borrow to fix growing infrastructure deficits. Bernard Hickey reports it will be forced into fancy and expensive financing tools such as PPPs and infrastructure bonds.
1. Grant's Budget belt big enough -- just
In this morning's email we discussed the unexpected items in the Budget area discovered by the incoming Government.