The campaign ramped up over the weekend with the release of Labour’s fiscal plan, which said the party would achieve a surplus by the old measure in 2029/30 and reduce net debt to 20% of gross domestic product (GDP).
The debt promise would be met using an old debt measure which was introduced by Grant Robertson but later scrapped by the coalition Government.
“Labour will get the books back into shape but we won’t do it by making life harder for New Zealanders or cutting the services they reply on. You can’t cut your way to growth,” Hipkins said, as he announced the rules.
“We’ll invest in the things that make New Zealand stronger – our hospitals and schools, infrastructure, skills and the businesses that create jobs,” he said.
National’s finance spokeswoman Nicola Willis attacked Labour’s other target, which is to allow core Crown expenses to rise to 33% of GDP.
She fired out a press release on Monday morning saying that with spending currently at 31.2% of GDP, Labour “will need to collect an additional $10.3 billion in core Crown revenue by 2031″ if it is to get spending close to 33% of GDP.
“Labour continues to claim that its capital gains tax is the only new tax it will implement, if elected. But that is incompatible with its stated goal of lifting spending and revenue to 33% of GDP.
“Labour’s capital gains tax is only expected to raise $1.35 billion in 2030/31. That leaves an $8.9 billion shortfall can only be reconciled with more new taxes or significant increases to existing taxes – or both,” Willis said.