Welcome to Debate stuff, a forum where you can have your say on the big topics of the day. Today, we want to hear your thoughts on government spending. How should they manage spending in tough times? Let us know in the comments.
Ahead of this week’s Budget, the Government has spent months warning about tough economic conditions, rising debt and the need for fiscal discipline.
But despite the talk of restraint, ministers still have billions of dollars to allocate.
So far, the Government has announced about $2.2 billion in new spending over the next four years, while also identifying nearly $4 billion in savings and cuts from existing programmes. On top of that, more than $1.3 billion a year in additional health funding for Health NZ was locked in from last year’s Budget.
Among the pre-Budget announcements have been increased defence spending, funding for new cancer medicines, boosts to KiwiSaver contribution rates and investments in infrastructure and frontline services. Ministers say these moves strike the right balance between investing where it matters and getting government finances back under control.
