“The 2018/19 financial statements show a Government sucking up economic output and leaving more room for tax cuts,” says
ACT Leader David Seymour.
“This year, the first year that truly reflects the current Government’s fiscal and economic management, Crown Revenue
has increased $9.3 billion from last year to 39.8% of GDP, of which $6.2 billion is an increase in tax revenue.
“The 2018/19 financial statements show a trend that is counter to New Zealanders’ interests as global headwinds
accumulate. At all times, but especially when external pressures are greater, the Government should be focused on
competitiveness. Instead we’re seeing the Government take more from the economy leaving less room for the private
“Expenditure as a percentage of GDP is up as Government spending charges ahead in spite of softer economic growth. Last
year Government Expenditure amounted to 36 per cent of GDP. This year the figure is up 1.1 per cent to 37.1 per cent of
“The Government’s financial statements for the year to June 30 show a Government committed to low quality spending as
economic storm clouds loom.
“Altogether we have a Government that is happy to splash the cash, but the result is a commercial sector with less and
less room to move. A more sensible option would be to remove the billions of low-quality spending implemented by the
Government and implement ACT’s flat tax policy of 17.5 per cent personal and company tax. THAT would get the economy