Bungling the budget | The Jackal

8 May 2012

Bungling the budget

Today, the NZ Herald reported:

The government took in $1.57 billion less tax than expected in the first nine months of the fiscal year, reflecting a tepid economy, Treasury figures show - reflecting what the Finance Minister says has been a 'difficult year'.

The Crown took in $39.8 billion in tax in the nine months ended March 31, against a forecast in the Pre-election Economic and Fiscal Update estimate of $41.3 billion, according to the government's financial statements.

When National took over in 2008, the government was in a good position to take on the global recession. The only thing that has changed since then is that National has bungled the budget by giving tax cuts to the already wealthy at the worst possible time. This is now costing New Zealand dearly by increasing borrowing to meet the shortfall.

National then use the additional borrowing to justify selling our assets and further cuts in expenditure. This austerity is also responsible for our economic under performance, with less money for people to spend equalling less jobs, reduced turnover and therefore a reduction in tax revenue.

The reason National got their projections so wrong is firstly that they wanted to appear in control prior to the last election and secondly that they're caught up in capitalist idealism, which is a proven worldwide failure. The people of Greece and France realise this... in 2014 this country will as well.