“Treasury confirmed today that the Prime Minister – who just lectured the nation on fiscal prudence – has borrowed $50 billion and never run a budget surplus.”
National is failing to manage the Government’s accounts prudently, Green Party Co-leader Dr Russel Norman said today.
The Government’s financial statements for the eight months to February 2014 show the operating deficit before gains and losses at $1.4 billion, or $884 million more than expected, due mainly to lower than-forecast core Crown tax revenue. Meanwhile net debt is $435 million higher than forecast at $60.0 billion or 27.1% of GDP.
“National has failed to manage the government’s books in a fiscally prudent manner,” said Dr Norman.
“Treasury confirmed today that the Prime Minister – who just lectured the nation on fiscal prudence – has borrowed $50 billion and never run a budget surplus.
“When National took office, net Government debt stood at $10.3 billion. Today, it hit $60 billion for the first time. This is a record level of government debt since Treasury started accounting for debt this way in 1992.
“Announcing tax cuts for the top ten percent of income earners has been responsible for $5 billion of accumulated debt alone.
“National is not delivering on its promise to run surpluses and reduce debt.”
Dr Norman questioned National’s long term management of the economy.
“National is failing in the short term to be a prudent fiscal manager of the Government’s accounts,” Dr Norman said.
“Taking a longer-term view, National has ignored the big structural problems with our economy – our high levels of private debt, our high current account deficit, and our on-going reliance on one or two industries to earn all our export income.
“National has failed to address rising property and electricity prices – driving interest rates higher. National has failed to put an effective price on carbon ensuring the New Zealand economy transitions towards a clean, low carbon future.
“The truth is that the Nats are just bad with money.”