No new spending


Political tragics have been exercised by sideshows in the past week but the government is concentrating on what matters.

On Q&A yesterday Prime Minister John Key said there is unlikely to be any new spending in this year’s Budget:

 It’ll be either a zero budget or very close to zero. What that means is we will spend more money in health and education, but all other ministries will be expected to save money. Why are we doing that? Well, because we need to get NZ back into surplus so we’re not racking up more debts and more deficit so that future generations aren’t continuing to pay for debts that we would be racking up today. So in the four years we will have delivered budgets, we will have spent about $2 billion worth of new money over that four-year period, effectively, of new expenditure through the budget process. Michael Cullen and Helen Clark will have spent $12 billion at the same time. That’s $10 billion of taxes you’re not having-

Individuals, households and businesses which have got the message that spending less and saving more is a priority will be encouraged that the government is continuing to swallow its own medicine.

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