Don’t cut spending in a recession – spending has increased from $87 billion to $114 billion so tick for that but the increase is too large.
Don’t increase taxes in a recession – no tax hikes sighted at this stage
Run a deficit in short to medium term – Deficits forecast for at least seven years which is more medium to long term
Debt should increase – it is increasing from $58 billion to 200 billion which is over $50,000 per household. That is far too big an increase.
There must be a path back to surplus – well in theory in eight years which is too long
Extra spending should be temporary not permanent – total fail here. Spending was $87 billion last year and will be over $113 billion not just this year but for the next five years. We will drown in debt
Capital Expenditure generally preferred over Operational Expenditure. Vast majority of the increase is operational.
Expenditure must make economic sense. A bit too early to judge but not promising. Seems like a random collection of projects to mollify key Labour constituencies
Capital expenditure should be on projects that can commence soon. Do you recall the 100,000 Kiwibuild houses and Light Rail by 2021? Expect more of the same – rhetoric rather than action.
Low quality spending must be ruthlessly reprioritised. Total fail at this stage as not a single pet project appears to have been axed
Don’t try and pick out some sectors as winners. Sigh, should have known better from politicians. Another handout to media has been flagged.
Costs on businesses must be decreased, not increased. The only initiative I can see is extending the wage subsidy scheme until after advance voting starts. Basically they want to delay the huge rise in unemployment until after the election. Nothing in the Budget about permanently decreasing costs on businesses.
We need economic growth. No real initiatives to boost the economy.
