ACT push for reduced spending vindicated by PREFU

"Achieving the much-delayed surplus in this year's PREFU will take significantly greater spending control than the Government has achieved to date. It will require a larger ACT presence in government to hold the line on ending and preventing wasteful spending,” says ACT Leader David Seymour.

"ACT’s repeated pushes to reduce spending have been vindicated, the difference between this PREFU and the 2023 one is our receipt. Back then, we were supposed to have a $2.1 billion dollar surplus in 2026/27, instead, we have an $8.7 billion forecast deficit, $10.8 billion worse off. That surplus that was forecast for this year, now will not occur for another two years.

"Net core crown debt was forecast to be $193.3 billion. It’s now $209.6 billion. We've slowed the growth but it's still heading in the wrong direction. Taxpayers are spending around a million dollars an hour just paying the interest. Money that could be spent on hospitals, schools, infrastructure, or reducing taxes.

"ACT has been saying we need to get rid of government waste faster. But only recently has it become government policy. This policy is now essential to achieving the savings Treasury has forecast.

"We can’t afford to relax about these levels of debt. The bond markets are raising interest on every western government. It turns out governments have mortgages to. Grant Robertson borrowed on interest rates with a 2 in front, but recently bonds have hit 5%.

"It’s the same story as people have with their mortgages, only taxpayers have to pay their actual mortgage as well as this one.

"The only thing worse would be a Labour Government running the books. Whatever optimism we do have for the economy would be evaporated by Labour’s $18 billion hole. That is why it is so important we lock Labour out, or Kiwi households will pay the price through inflation, higher mortgage rates and an economy that continues to circle the drain.

"To reach the forecast level of Government spending being less than 30 per cent of GDP, will require more commitment to ending wasteful spending and resisting new and unnecessary spending.

"ACT is up for the challenge. We have been pushing for a smaller and more efficient public service that can live within its means, and there is wasteful spending we can get rid of all through government. Our coalition partners have just started to listen towards the end of our term, and if we’re re-elected ACT will end the waste."