I have three concerns about last week’s Budget.
The Government is borrowing $100 billion over the next four years, or $60,000 for every household. This increases New Zealand debt to record levels not seen since the painful economic crisis of the early 1990s when it was 48% of GDP.
National got it down through the 1990’s to 20% by 2000. Bill English rightly borrowed to get New Zealand through the Global Financial Crisis in 2008 and the Christchurch Earthquakes in 2011 and debt peaked at 25% in 2012. He got back into surplus in 2014, and had debt back down to 19% by 2017.
Grant Robertson has already increased debt to 33% and this Budget increases it again to 48% of GDP in 2025. It plans deficits for all of the next 6 years. The Budget debate in Parliament last week had Labour MP’s boasting of being “proud socialists”. My problem with socialism is that you eventually run out of other peoples money.
My second concern is that the Budget has nothing for the average Nelson family. There is $500 million to pay for restructuring in health but doctors’ and nurses’ salaries are frozen for 3 years. Teachers and police are also expected to accept zero increase in wages while the cost of rent, insurance, rates and food rises. Most working families are going backwards.
My third concern is the lack of a future plan to get New Zealand’s economy growing again. The vaccine rollout is amongst the slowest in the world limiting the opportunity for New Zealand to recover. We should be better supporting people into jobs rather than paying them more to do nothing. Science funding is being reduced. Education was ignored. Infrastructure and housing projects announced years ago as shovel ready are not happening. New Zealand can do much better.
