Posts Tagged ‘strategic deficit’

No surplus for you!

Written By: - Date published: 11:17 am, June 15th, 2012 - 14 comments

National has reduced the multifaceted, extremely complex job of economy management to a simple bookkeeping goal: a surplus, whatever its size, by 2014/15. Treasury came to the party, projecting a $200m, 0.08% of GDP, surplus for 2014/15 in the Budget. Now, the Reserve Bank’s projected a 1.1%, $2.5b deficit. Oops.

Best stick to the polling, Farrar

Written By: - Date published: 7:07 am, March 19th, 2012 - 103 comments

David Farrar has had a go at David Clark for supposedly blaming (or crediting, Farrar can’t make up his mind) National for the revenue loss resulting from Labour’s 2008 tax cuts after Clark said that National’s tax cuts have sucked 2.5% of GDP out of the Crown’s revenue, widening the deficit by $5b a year. Either Farrar can’t read or he’s desperately spinning.

Nats running a $5b a year strategic deficit

Written By: - Date published: 8:38 am, March 18th, 2012 - 112 comments

Labour’s Revenue spokesman, David Clark, has picked up on a statement in IRD’s Briefing to the Incoming Minister that “2.5 percentage points of this decline [in tax take as a percentage of GDP] is attributable to policy changes”. 2.5% of GDP is $5 billion a year. So, a huge chunk of the record deficits that National is running is attributable to their tax cuts for the rich.

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