$35 billion more debt!

The Herald reports:

Westpac economists expect to see a continued deterioration in the books when the full-year results are published on September 12, alongside an updated set of Treasury forecasts. …

Westpac economists believe this will mean that instead of issuing $120b of New Zealand Government Bonds (debt) in the four years to 2026/27 (as forecast in May), Treasury will need to issue $135b.

In other words, if the Government sticks to its spending plans, and if Westpac economists’ forecasts of Treasury’s forecasts eventuate, the Government will need to borrow an extra $15b over the next four years.

This would add to a string of previous upward revisions, which would see Treasury issue $35b (or 35 per cent) more debt over the four-year period than expected in December.

So a $35 billion projected debt blowout in just eight months. That’s around an extra $7,000 of debt per person.