Government abandons fiscal responsibility rule after just 18 months

The Herald reports:

The this morning announced that it will shift its target from a single figure to a percentage range.
Finance Minister Grant Robertson explained the is looking at a range of around 15 to 25 per cent of the GDP.
“Essentially, our current 20 per cent target falls in the middle of the new range that will exist from 2021/22 onwards,” Robertson said in a speech this morning to the Craigs Investment Partners investor conference.
The move potentially gives the more scope for in its second term – and promises in the 2020 campaign.

This would give the wriggle room to spend more – potentially up to $15 billion – based on the additional 5 per cent of GDP available to them.

Calling Steven Joyce, Calling Steven Joyce – I think we’ve found your $11 billion hole!

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