David Farrar: Cut spending and lower debt and interest rates

Radio NZ reports:

Leading credit agency S&P Global Ratings has reaffirmed New Zealand’s AA+ rating with a stable outlook, but noted budget deficits and debt need to be tackled.

They do. And there is some progress.

But conversely progress in tackling the state of government finances might lead to an upgrade.

“Indications of this would include the general government deficit contracting to less than 3 percent of GDP, and net general government debt or interest expenses falling on a structural basis to less than 30 percent of GDP and 5 percent of government revenues, respectively.”

So if we can cut the deficit, we may even get a credit ratings upgrade. This would mean paying less interest on the debt, freeing up money for health and education.

David Farrar runs Curia Market Research, a specialist opinion polling and research agency, and the popular Kiwiblog where this article was sourced. He previously worked in the Parliament for eight years, serving two National Party Prime Ministers and three Opposition Leaders