This is not a bonus:
Almost $1 billion that was allocated for the Covid-19 response last year was never spent, and Finance Minister Grant Robertson has put it back into the Covid fund to spend on the recovery.
Robertson delivered the first of his pre-Budget speeches this morning to the Wellington Chamber of Commerce, saying Budget 2021 would be a “recovery Budget”. . .
Finding you’ve spent less than you borrowed doesn’t mean you should spend it all.
Responding to the Finance Minister’s decision to reallocate $926 million from the COVID-19 response fund, New Zealand Taxpayers’ Union spokesman Louis Houlbrooke says:
“Grant Robertson is acting like he’s got a spending target. Someone needs to tell him he doesn’t actually have to spend every last cent from his COVID-19 response fund.”
“The Government’s decision to borrow more than $100 billion has monumental consequences for future generations of taxpayers. That borrowing was justified purely on the basis of dealing with COVID-19. If we no longer need the money for our COVID-19 response, then it should simply not be spent.”
“We’re currently looking at a forecast of around $100,000 in government debt for every household in the country. The Finance Minister should be using whatever fiscal wriggle room he can find to reduce that burden.”
Not spending as much borrowed money than at first anticipated doesn’t give you more money. It could give less debt if it’s not spent.