Baseline Budget spending increased three times more than inflation and economic growth in the last four years.
“Baseline Budget spending has jumped 45 per cent since 2005 – at a time when inflation and the economy only grew by about 15 per cent.
“More than a third of all Budget vote areas received funding increases of over 50 per cent in the past five years and over two thirds received increases of more than 30 per cent.
“This kind of rampant spending growth is unsustainable and cannot continue.”
The table shows the increase in spending:
These are unsustainable figures – and they exclude some expenses, such as benefits and Working for Families payments, the purchase of KiwiRail and loan write-offs.
This is Labour’s legacy but reversing it is National’s responsibility.
We can’t keep going on like this. The government is borrowing an average $250 million a week, every week, over the next four years to continue providing public services and maintain welfare payments.
That is a hand break on economic growth and if it’s not checked we’ll be handicapping future generations too.