“Treasury is saying what ACT has said all along. The rampant inflation that is making life impossible for Kiwis has been fuelled by Labour’s wasteful spending,” says ACT Leader David Seymour.

“The report states “The surge in inflation from 2021 was initially demand-driven by stimulatory monetary and fiscal policy, and rapidly increasing house prices which fuelled economic activity,” inflation is sticking around because at no point has the Government learnt its lesson.

“Jacinda Ardern tried to outright deny her government was contributing to inflation through wasteful spending. Chris Hipkins at least admits Government spending is a factor, but he is totally wrong when he claims their spending was justified.

“Everyday New Zealanders are now paying the price for Labour’s frivolity at the pump, the checkout, and at the bank as they get their mortgages repriced for hundreds of dollars more per week. This is why food prices continue to increase and is why inflation will still be high when CPI is announced on Thursday.

“ACT has gone through the Government’s budget line-by-line and found dozens of examples of waste.

“The Government is spending $970 million a year on the climate – including the Climate Emergency Response Fund and the Climate Change Commission – when we have a capped Emissions Trading Scheme. These programmes don’t reduce emissions by a single gram.

“Middle-class welfare, including Fees-Free and KiwiSaver subsidies, comes in at $1.8 billion annually.

“Labour spends $1.2 billion annually on corporate welfare, including the Provincial Growth Fund, Callaghan Innovation, the Cultural Sector Regeneration Fund, and domestic and international film subsidies.

“Inefficient make-work schemes like Jobs for Nature, hunting wallabies, and pest and pine control jobs are costing us $345 million annually.

“‘Demographic’ ministries are totally ineffective at helping people but cost the taxpayer $150 million a year.

“Labour thinks the Government is better at spending your money than you are. That’s wrong.

“ACT has released an Alternative Budget each year showing how the Government could cut billions of dollars in wasteful spending without touching frontline services. Hopefully this year Grant Robertson will listen.”

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