INDEPENDENT NEWS

Government Expenditure Still Out of Control

Published: Fri 21 May 2010 03:21 PM
Government Expenditure Still Out of Control
The most concerning aspect of Budget 2010 is its failure to stop the expansion of Government expenditure, ACT New Zealand Finance Spokesman Sir Roger Douglas said today.
"While I applaud the reductions in tax – which could have gone further – it’s deeply troubling that the growth in Government expenditure continues to outstrip inflation. Core Crown expenses are set to rise almost 10 percent in the 2010/11 financial year," Sir Roger said.
"To be fair, part of that increase – approximately two percentage points – is attributable to the increase in GST. Even taking this into account, the rate of increase is almost four times higher than inflation is right now, me
"Given how terrible fiscal management has been since 1996, it is easy to overestimate the positives in this budget. So long as Government expenditure growth continues to outstrip inflation, then the real size of Government is increasing. National – the party that believes in private enterprise and the power of tax cuts – is increasing Government expenditure.
"If National were able to apply greater levels of fiscal control, then taxes could be cut further. The medium term goal for this conserva
ENDS

Next in New Zealand politics

Green Party Co-Leaders Full Speech: State Of The Planet: Government Must Be Guided By Values Not Money
By: Green Party
Poll Shows Three Quarters Of Wellingtonians Oppose Airport Sale
By: Wellington Airport
Christopher Luxon - Pre-Budget Speech To Auckland Business Chamber
By: New Zealand Government
New Zealand Supports UN Palestine Resolution
By: New Zealand Government
Greens Welcome Cross-party Approach To Climate Adaptation
By: Green Party
Climate Change – Mitigating The Risks And Costs
By: New Zealand Government
View as: DESKTOP | MOBILE © Scoop Media