After declaring they would raid the pandemic fund for middle class tax cuts, it turns out National have completely screwed up their numbers!
Labour Party finance spokesman Grant Robertson says he has found a $4 billion hole in the National Party’s fiscal and economic plan over the next decade, which was released on Friday.
National Party Finance spokesman Paul Goldsmith has been contacted for comment.
National’s plan, which included reining in spending and a big temporary tax cut also planned to suspend contributions to the New Zealand Superannuation Fund as a way of freeing up money and paying down debt quicker.
It is accounting for this change which appears to have tripped the party up. Instead of using the numbers from last week’s Pre-Election Economic and Fiscal Update (PREFU), it used the figures from the May Budget figures (the Budget Economic and Fiscal Update).
Treasury revised down the projections for the size of contributions to the superannuation fund over the next decade last week from $19.1 billion to $14.8 billion, leaving a $4.3 billion shortfall.
The Labour Party Figures have been verified by economic consultancy Infometrics.
The change would not affect the National Party’s proposed temporary tax cuts, which are being paid for by drawing down $4.9 billion of the $14 billion Robertson had set aside from Covid-19 Response and Recovery Fund for future Covid policies, if needed.
Instead, it would hit the bottom line of money available for National’s ongoing spending plans.
This is bad.
They’ve completely screwed up their budgets by using the wrong figures. This is humiliating for a Political Party, especially one that is attempting to claim they are better managers of the economy.
This will crucify Judith in the debate on Tuesday.
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