September 21, 2026 3:00pm by David Farrar

Heard that before

The Post reports:

Labour leader Chris Hipkins says he is not aiming to make state spending and taxation 33% of the economy, despite his party’s fiscal strategy suggesting it would eventually get there. …

National has attacked the 33% figure, arguing it shows that Labour will need to enact more than just the CGT, which is only expected to raise $1.5 billion within the forecast period ‒ which would not get anywhere close to raising revenue to 33%.

Speaking to reporters on Tuesday following some of these attacks, Hipkins suggested 33% was more of a ceiling than a target.

I’ve heard that before – almost identically.

In 2017 Labour and Greens promised to cap spending at 30% of GDP. In the 2018 budget I noted (with approval) in the Budget lockup that spending was below 29% of GDP, and Grant Robertson replied that 30% was not ceiling, not a target.

Alas, it turned out to be neither, and Labour exceeded the so called ceiling by almost 4% of GDP.

If a ceiling of 30% turns into an actual of 34%, I can only imagine what a ceiling of 34% will turn into!