Labour’s Budget blowout means risk of more debt

This year’s Budget blowout means not enough money in the kitty for next year, making it almost certain that debt will rise and send the government books backwards even further, National’s Finance Spokesperson Nicola Willis says.

“Grant Robertson is addicted to spending. He had originally planned to spend $2.4 billion in Budget 2022, but by Budget Day the total spend-up had blown out to $9.5 billion per year.

“He’s raided Budget 2023 and Budget 2024 for this year’s spending spree, leaving $2.5 billion in next year’s budget allowance to meet additional cost pressures and election year commitments.

“With a track record of massive spending blowouts and having just announced the biggest spend-up in Budget history, New Zealanders will find it very difficult to believe that Grant Robertson will keep next year’s spending increase to $2.5 billion.

“Treasury has confirmed that this will be challenging, warning the Government that they will either have to reprioritise existing services, increase taxes, or increase spending again.

“With inflation forecast to remain elevated and an upcoming election, it’s almost certain that Grant Robertson will again increase spending and leave more debt to be paid off by future generations.

“Labour’s economic mismanagement is sending the government books backwards.”