HYEFU And BPS Data Shows New Zealand Is Way Off Track – CTU

New data released by the Treasury shows that the economic policies of this Government have made things worse in the year since they took office, said NZCTU Economist Craig Renney.

“Our fiscal indicators are all heading in the wrong direction – with higher levels of debt, a higher deficit, and deeper cuts programmed in the future. Our economic indicators are all heading in the wrong direction, with lower economic growth and higher unemployment. The Government’s policies are hurting working people, and they’re not working for Aotearoa,” said Renney.

“The data showed that the economy is growing more slowly than forecast just six months ago. Next year GDP growth was forecast to 1.7% at Budget, now its 0.5%. GDP is $20bn lower by 2028. Unemployment is higher in every year of the forecast – with 20,000 more people on jobseekers support by 2026. OBEGAL absent the new tricks of accounting – never comes back into surplus across the forecast period. Net Core Crown Debt increases across the forecast period by $58bn.

“The Budget Policy Statement signals that we are in for more cuts in the next few budgets. There is only $700m available at the next Budget to pay for everything outside health. That bakes in likely cuts to public investment and to the public sector workforce every year for the next few years. All to pay for the tax cuts that have now passed. The folly of that decision is now being uncovered.

“These books paint a picture of a government without a plan. The only solution the Minister of Finance is planning is to double down on an already failing strategy. These are the Government’s books; responsibility shouldn’t be passed on. Working people and communities across Aotearoa will suffer if we don’t change track,” said Renney.