Wednesday, July 30, 2008

Can Cullen afford HIS spending promises?


Echoeing the debate we had yestrday, Fran O'Sullivan wonder with National adopting so many Liarbour policies "it's tempting to wonder if John Key is auditioning to be Helen Clark in drag."
Fran notes the country's declining finances and deepening recssion which may make it unaffordable for us to have National taxcuts AND Liarbour spending policies.
Even before the recession was confirmed, Cullen was warning that whichever party becomes Government later this year, they will still be forced to reprioritise government spending in light of the less clement economic conditions.
That was then.
Yesterday, Cullen confirmed that tax receipts for the year ended June 30 were $700 million down on forecast due to lower economic growth.
Cullen's own $10.6 billion programme of personal tax cuts was forecast in the May Budget to push the cash deficit to $3.48 billion in the year to June 30, 2009 with similar deficits forecasts for the three following years. Two weeks ago, the Finance Minister was quietly warning business circles that the Government's accounts were coming under pressure. Yesterday he confirmed that the pre-election economic and fiscal update would (likely) show an increase in the cash deficits.
Reuters takes up the story:
The budget forecast a cash surplus of $908 million for the current fiscal year, declining to a deficit of nearly $3.5 billion in 2009, amid a slowing economy and cuts to income tax, which will reduce revenue.
The Government must publish a special updated fiscal report ahead of this year's general election, which is due by mid-November.
Indeed, thank heavens that after Liarbour left a huge hole in the country's finances in 1990, which led to the 'Mother of All Budgets' , and the Fiscal Responsibility Act, we should be spared no nasty surprises this time should/when Bill English opens the books post election.
But it certainly seems the rapidly deteriorating eonomic situation may mean Liarbour cannot afford its programmes either, and that too should be a focus of media questioning, rather than simpling sticking it to National in a desperate bid to keep Liarbour in the game.

5 comments:

Anonymous said...

Both stories confirm the Cullen spend up in a sinking economy.
So it does leave a risk for National on the affordability of its own taxcuts when it appears to accept so much of Liarbour's agenda.
It's like Liarbour is deliberately scuppering National's chances post-election- a scorched earth policy.
Get Liarbore-lite to accept Liarbore policy but leave finances in such a mess Key cannot implement any of the promises he wants.
That way, Liarbore still wins the election, but has a cash-strapped National-led government carryinbg out its mandate.

pdq

Barnsley Bill said...

More to the point. Can we afford Cullen's spending promises?

Anonymous said...

this is were the economists either put up or shut up for all time Wheres the fully costed independent analysis.

In my business until the accountants can come up with the figures then it dont get to happen.

So why should we the citizens not demand and get the same

gd

JC said...

I say fuck it! Labour have taken a windfall $40 billion of net operating surplus off us, nearly $20 billion in unbudgeted tax, paid down sovereign debt, boosted public spending enormously and to little or negative effect and generally acted corruptly.

These bastards owe this generation plenty and it's time we presented a bill to them. That's an invoice of $20 billion.. average $8000 each for every taxpayer.. and it's up to them, Labour or National to pay it any way they can.

And if they scream "what about the children", root 'em in the arse because they've been stealing from the children for decades.

So the Nats say they won't borrow to fund $50/week tax cuts, but what do I care, *we are owed*, and if we keep on accepting the double talk then the drain to Oz will accelerate and another generation of remaining NZers will be stuffed again.

I don't begrudge a lowish 20% of core govt expenditure and a rate demand on me as a person (not the value of my property), but beyond that these bastards should actually manage the budget within those limits and get the fuck out of the rest.

JC

Anonymous said...

Can we afford Cullen's spending promises?

We've never ever been able to afford Cullen's promises.

It's like Liarbour is deliberately scuppering National's chances post-election- a scorched earth policy.

No - this is precisely what Labour is doing. Labour and their union allies are by far the most destructive force in NZ"s society.


So the Nats say they won't borrow to fund $50/week tax cuts,

$50 per week is still chickenfeed. We need at least $100 per week - and we shouldn't borrow for it. It's easy to afford, however, just stop the bludgers.

Cancel the dole, the DPB, and get rid of the disease-ridden crap "hospitals" once and for all.