Fiscal hole National predicted all along

The half year economic and fiscal update (HYEFU) proves Jacinda Ardern and Grant Robertson’s 2017 fiscal plan never added up and they simply can’t be trusted on the economy, Leader of the Opposition Simon Bridges says.

“This week, Jacinda Ardern and Grant Robertson broke their promise to New Zealanders to run surpluses and reduce debt below 20 per cent of GDP by 2022.

“Despite inheriting massive surpluses as far as the eye could see, the Government has blown them in just two years by putting the books back into a $1 billion deficit.

“HYEFU proves Labour’s 2017 fiscal plan, reviewed by BERL, did not add up. Labour said it would run a $6 billion surplus in 2020 but the latest figures show it’s going to run a $1 billion deficit instead.

“Over the entire five year period forecasted by Labour in 2017, it underestimated its operating spending commitments by $23 billion, double what we estimated at the time.

“Over the same period, the surpluses Labour projected in 2017 were $11 billion higher than those at HYEFU.

“National always said Labour’s fiscal plans didn’t add up and HYEFU proves we were right all along. Jacinda Ardern and Grant Robertson have blown the budget.

“Its fiscal plan and budget responsibility rules were only created because Labour knew New Zealanders didn’t trust it to spend wisely. That lack of trust has been fully justified.

“The Government would not need to break its debt promise if it hadn’t wasted billions of taxpayer dollars on failed experimental policies like KiwiBuild, Fees Free or the Provincial Growth Fund.

“A National Government would restore confidence and revive our economy by getting on with infrastructure, by making it easier for businesses, large and small, to get on with it and by being disciplined and effective in Government.”