19 July, 2017
Labour had its fiscal plan assessed by Berl to ensure it was consistent with the Fiscal Responsibility Rules it signed up to with the Green Party, which require it to deliver a sustainable surplus, to reduce net Crown debt to 20 per cent of GDP within five years of taking office, and prioritising investments that are important for the future of New Zealand - such as contributions to the Super Fund.
"Remember, National and Labour sold New Zealand's savings when they flogged off our state assets, like forestry, power companies, banking, steel, insurance".
The spending projections kick in from mid-2018 and run from 2018/19 to 2021/22.
"Little and Finance Spokesman Grant Robertson are due to formally release the policy and answer questions at an event in Wellington later this morning". All up over the four years, Labour is envisaging spending almost $20bn more than Budget 2017 projections.
There is no separate budget set aside to pay for its support partners' policies in post-election negotiations, but in 2014 Labour included that in its own spending allowance for policies that were yet to be announced.
"We'll restore contributions in full to the NZ Superannuation Fund, so there will be a nest egg to cushion demand, which was the original goal for its establishment". The government operating balance excluding gains and losses (OBEGAL) will sit between 1.2% and 2.2% of GDP over that time. The party said economic consultancy BERL had taken a look at the plan.
Little said there was the fiscal headroom available to spend more on housing, health, education and infrastructure. "Our plan will boost the incomes of low and middle-income families, create opportunities for our young people, and improve the lives of all", he says.
Labour has already announced plans for $5 billion of spending on family incomes, a baby bonus and a winter energy payment, and to invest $6.2 billion in contributions to the New Zealand Superannuation Fund over the next four years. Under Labour's plan, we'll double the existing size of the current fund to around $63 billion by 2022.
As well as using expected government surpluses to pay for its spending, Labour says extra revenue generated by reversing National's tax cuts, bright line and negative gearing changes and multinational taxation is used.
