The Government has managed to give itself some headroom in a tight fiscal environment, Parker says.<\/p>\n
So there was some scope for new spending.<\/p>\n
\u201cSo there are the public sector cuts at $2.4 billion and another $350 million from student fees \u2013 the amount that they were gonna give to third-year students,\u201d she says.<\/p>\n
\u201cThat\u2019s a little bit of money to play with. But you know, there\u2019s a lot of other aspects, tax revenue\u2019s going to be down because the economy\u2019s not doing as well as we\u2019d hoped.\u201d<\/p>\n
New Treasury forecasts would be \u201cugly\u201d, Dann says.<\/p>\n
\u201cThey\u2019re gonna be updated from pre-[Iran] war expectations,\u201d he says.<\/p>\n
So, where could new spending land?<\/p>\n
It would need to go somewhere that would improve economic growth long-term \u2013 or at least not add to current inflation concerns, Dann says.<\/p>\n
That could mean some extra money for health, perhaps broadening subsidies for GP visits to head off Labour\u2019s free-visit policy, he says.<\/p>\n
Parker makes the case for something to boost investment in KiwiSaver.<\/p>\n
Moves to boost energy security would also be popular. A subsidy for solar panels could be an option, Parker says.<\/p>\n
This week, The Economy of Everything podcast also dives into the growing divide over when the Official Cash Rate should be hiked.<\/p>\n
Parker and Dann also look at the rise of artificial intelligence (AI) as an excuse for companies (and governments) looking to cut staff and cut costs.<\/p>\n
Listen to the full episode<\/a> for the full conversation.<\/p>\n