Phil Goff is worrying about a $35 billion shortfall for baby-boomers superannuation payments becuase of . I agree it's a big problem - in ten years time there will be double the number of people over 65 able to claim superannuation.
However, I think this chart should put Phil's worries to rest. Bill English's budget has increased spending on core services like hospitals and schools, and has reduced the debt projection by over $100 billion - $65 billion of debt that would have to be paid somehow.
Source: New Zealand Treasury
While I'm disappointed by the lack of tax cuts - but the axing of these had been well signalled. And if the tax cuts were instituted there would be billions more debt in the next decade, and tax increases or spending cuts would be required to control debt again.
Phil Goff has a duty to question the budget, but it's probably best not to suggest taking on $100 billion of debt just to fund $35 billion of pensions.
However, I think this chart should put Phil's worries to rest. Bill English's budget has increased spending on core services like hospitals and schools, and has reduced the debt projection by over $100 billion - $65 billion of debt that would have to be paid somehow.
Source: New Zealand Treasury
While I'm disappointed by the lack of tax cuts - but the axing of these had been well signalled. And if the tax cuts were instituted there would be billions more debt in the next decade, and tax increases or spending cuts would be required to control debt again.
Phil Goff has a duty to question the budget, but it's probably best not to suggest taking on $100 billion of debt just to fund $35 billion of pensions.
posted by Michael at
2:14 PM
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