Thursday, December 21, 2023

Bryce Wilkinson: Media release - Government’s mini-budget fronts the serious challenges ahead

Wellington (Wednesday, 20 December 2023) - “Treasury’s updated fiscal and economic forecasts released today confirm that this government faces serious fiscal challenges”, said Dr Bryce Wilkinson, Senior Fellow at the New Zealand Initiative.

“The Minister of Finance’s “mini-budget” statement shows she fully ‘gets it’.”

“Taxpayers and the recipients of government spending cannot all expect to avoid the burden of those challenges”.

The contrast in the fiscal position this government faces and the one the outgoing Labour government faced when it first assumed power in late 2017 is dramatic. Two statistics illustrate this.
  • In December 2017, Treasury forecast, using its OBEGAL measure, cumulative fiscal surpluses in the five years to June 2022 of $26 billion. Today’s update forecast a cumulative fiscal deficit of $36 billion in the five years to June 2027.
  • In December 2017, Treasury forecast that government would need to raise a mere $7 billion over five years to fund the portion of its core Crown capital spending that could not be funded from operating surpluses. This National-led government faces a five-year funding requirement of $63 billion.
“Those stark facts are silent as to blame and circumstance”, continued Dr Wilkinson. “Today’s message is that taxpayers and recipients of government spending should not expect much joy from government spending and taxation decisions for many years.”

Dr Bryce Wilkinson is a Senior Fellow at The New Zealand Initiative, Director of Capital Economics, and former Director of the New Zealand Treasury. His articles can be seen HERE. - where this article was sourced.


Rob Beechey said...

If the buffoon Robertson was a company director in the private sector, he would be jailed and not free to languish on the opposition benches giggling at the financial carnage in his wake. His crimes are being protected by the famously empty headed Tova O’Brien as she attacks the adults that face fixing this improbable task.

Tom L said...

Labour seems to think it's sensible for those in struggle street on low incomes to be taxed at medium income tax rates. And then make them state dependent welfare beneficiaries by way of Working for Families and other benefits.

And employ an army of bureaucrats in the process.

Labour just don't get the basic right and dignity of feeding your kids from your own wage packet. That sort of thinking used to be Labour's bread and butter.

Nicola definitely " get it" allright .

Anonymous said...

If there was a real discussion around fiat economics, most politicians and "experts" would be in prison for crimes against humanity