Another $2.2 billion hole in Labour’s fiscal plan
Labour has overstated the revenue it would raise by cancelling Investment Boost, to the tune of around $2.2 billion, National’s Finance spokesperson Nicola Willis says.
“Labour claims cancelling Investment Boost will generate $7.7 billion to help pay for its election promises. But based on official Budget costings, the cost of Investment Boost is actually $5.5 billion over the forecast period.
“That leaves a $2.2 billion gap that Chris Hipkins and Barbara Edmonds need to explain.
“Official Treasury and Inland Revenue forecasts put the cost of Investment Boost at $1.71 billion in 2027/28 and $1.28 billion in 2028/29.
“Labour’s fiscal plan instead claims cancelling Investment Boost would generate $2.11 billion and $1.97 billion of savings in those same years.
“That is nearly $1.1 billion more revenue in just two years than the official costings suggest, yet Labour provides no explanation for where that additional money comes from.
“This election will be tight and the choice could not be clearer.
“It’s either a Labour coalition that would squander surpluses, increase debt and hit Kiwis with nine new taxes costing Kiwi households $2,263 per year, or National with a plan to grow the economy, spend sensibly and pay down debt, with no new taxes so Kiwis can get ahead and build a more secure future.”
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