The most concerning aspect of Budget 2010 is its failure to stop the expansion of Government expenditure, ACT New Zealand Finance Spokesman Sir Roger Douglas said today.

"While I applaud the reductions in tax – which could have gone further – it’s deeply troubling that the growth in Government expenditure continues to outstrip inflation. Core Crown expenses are set to rise almost 10 percent in the 2010/11 financial year," Sir Roger said.

"To be fair, part of that increase – approximately two percentage points – is attributable to the increase in GST. Even taking this into account, the rate of increase is almost four times higher than inflation is right now, meaning that an increasing amount of output is being taken from the pockets of taxpayers and shovelled to Wellington.

"Given how terrible fiscal management has been since 1996, it is easy to overestimate the positives in this budget. So long as Government expenditure growth continues to outstrip inflation, then the real size of Government is increasing. National – the party that believes in private enterprise and the power of tax cuts – is increasing Government expenditure.

"If National were able to apply greater levels of fiscal control, then taxes could be cut further. The medium term goal for this conservative Government should now be alignment at 28-28-28 for top personal income, corporate, and trust rates,” Sir Roger said.

ENDS