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Robertson must cancel all new Budget spending - NZ Taxpayers Union

Contributor:
Fuseworks Media
Fuseworks Media

Responding to the highest inflation figure in three decades, the New Zealand Taxpayers’ Union is calling on Finance Minister Grant Robertson to cancel all planned new spending in next month’s Budget.

Union spokesman Louis Houlbrooke says, "Inflation is driving a massive revenue windfall for Grant Robertson as households are pushed into higher income tax brackets, even when our real purchasing power is going backwards."

"Just because Grant Robertson can afford a spending blowout in next month’s Budget, it doesn’t mean the economy can. Ever more Government spending will only drive inflation higher, at the expense of real household incomes."

"The Government’s $6 billion new operating allowance should instead be used for a mixture of debt repayment and tax relief. Tax relief is of course less inflationary than Government spending because a share of it is saved by households, and household spending is dispersed across the economy rather than concentrated in red-hot sectors like construction."

"If Grant Robertson really feels he needs to announce new spending, he should do it by clawing back unallocated and unspent money from his $74 billion COVID slush fund."

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