Fiscal Restraint Paying Off
The crown accounts for the last financial year show improvement compared to the previous year, which was inherited from the previous government.
- Deficit decreased from $8.4b to $4.4b
- Spending as a percentage of GDP dropped from 42.9% to 42.1%
- Core crown expenses decreased from 33.1% to 32.5%
Although there is still a long way to go to achieve a surplus and spending under 30% of GDP, the current trend is positive.
Labour and Greens in 2017 agreed that 30% of GDP was a cap for spending.
It would be beneficial to compare these results with those of the first and second terms of the recent Labour Government (Ardern) and National (Key).
Author's summary: Fiscal restraint shows positive results.