Budget 2009

The New Zealand budget wasn’t great, but it could have been a lot worse. I’m generally happy when government doesn’t wildly overreact to hard times. David Farrar has a good summary.

Bill English talked up the need to reduce government debt, but didn’t do much to address the problem. Throwing money at health and infrastructure isn’t a good way to balance the books. Ending automatic contributions to the Superfund is an unambiguously good idea when the government is running deficits, but using the fund to support ‘local capital markets’ is unambiguously stupid and xenophobic. Setting limits for future spending increases is a nice idea, but it’s not really a credible commitment (even constitutional constraints on spending seem to be ineffective).

My considered reaction: meh.

One Response

  1. Just wait till the baby boomers raise our taxes to fund their current lifestyle into retirement.

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