Articles tagged Budget Responsibility Rules

Dr Bryce Edwards of Victoria University forecasts some of the spin likely to accompany Thursday’s Budget. He argues we should be careful not to believe the hype, and the Government shouldn’t be given a free pass if their Budget isn’t up to dealing with the problems facing the country.

Treasury reported the Government's surplus was $910 million better than expected in the nine months to March 2018, largely because solid economic growth drove higher corporate tax receipts, higher income taxes and higher GST receipts. Treasury said tax revenues were $1.1 billion better than it forecast in December and this was expected to hold for the rest of the financial year.

Before becoming Prime Minister, a politician sent leaflets to households in the Mount Albert electorate then being contested. The leaflets pledged first “that human values are more important than material values” and “Social Security is the right of every New Zealander, young and old”.

The Government is looking at new and novel ways of financing infrastructure without breaking its strict budget responsibility rules.

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.