Labour has released their fiscal strategy for the election, promising to get back to surplus by 2029/30, slash debt and set up an independent Parliamentary Budget Office, if elected.
Leader Chris Hipkins said his party would “get the books back into shape”, but would not do it by “making life harder” and cutting services.
“New Zealand should be a country where hard work gets you somewhere. Where you can get ahead, put down roots and know your kids will have opportunities here.
“We’ll invest in the things that make New Zealand stronger – our hospitals and schools, infrastructure, skills and the businesses that create jobs” Hipkins said.
Finance and economy spokesperson Barbara Edmonds said the plan would balance the books and bring down debt, while giving New Zealand the “capacity to invest in its future”.
“Labour will return the books to surplus by 2029/30 and reduce net debt over time but we won’t do that by cutting the foundations of our economy.”
“Under National unemployment is at an 11-year high, business liquidations are up 71 percent, homelessness and KiwiSaver hardship withdrawals are at record levels, and public services are under pressure – that isn’t economic success,” Edmonds said.
National said it would return to surplus in 2028/29 – under its OBEGALx formula – but would hit surplus the same year as Labour is projecting under the OBEGAL measure.
National would also keep Crown expenditure down towards 30 percent of GDP and get debt down to below 40 percent of GDP.