The National Party today unveiled its fiscal plan ahead of the upcoming election, promising "responsible" spending if elected.
A release announcing the plan was titled: "Disciplined spending, less tax, lower debt under National."
National's finance spokesperson Nicola Willis said New Zealand "cannot afford to continue" down its current path.
"The return of a National government means a return to responsible economic management, which will enable our economy to grow and get New Zealand back on track," Willis said, criticising the spending of successive Labour-led governments since 2017.
"People are doing it tough right now — their household finances have been pummelled by the cost-of-living crisis, high interest rates and high taxes. Kiwis deserve tax relief and National will deliver it."
National's finance spokesperson Nicola Willis says the plan is responsible and credible. (Source: 1News)
The 14-page document outlines how the party proposes to pay for policies, including its controversial tax plan.
It lists five key fiscal principles: "Return to surplus and reduce debt", "support frontline services", "invest in infrastructure", "restore discipline to government spending" and "deliver tax relief for hard-working Kiwis".
Willis said the plan would deliver more funding for schools and hospitals in future budgets.
"The next National government will meet these pressing needs while also charting a path back to balanced books and lower debt.
"Kiwis have had to tighten their belts through the cost-of-living crisis, so it is only fair that the government does the same with smaller allowances for new spending in upcoming budgets," she said.
"National's disciplined approach results in a forecast $3.4 billion reduction in debt compared to Labour in 2027/28. Under National a $2.9 billion surplus is forecast for 2026/27, $0.8 billion higher than Labour.
"We have provided for significant buffers, with $9.9 billion of unallocated operating spending to ensure we can respond to cost pressures and changing circumstances."
Willis also criticised Labour's fiscal plan. Labour's finance spokesperson Grant Robertson had called it "costed and credible".
Willis said: "Labour's plan does not have any credibility when they have failed to stay within their spending limits for every single Budget since they have been in office, nor when they have delayed the return to surplus three times in the last two years.
"National's fiscal plan is responsible and credible. It has been reviewed and verified by independent economic advisers Castalia."
Labour's plan was reviewed by independent consultancy Infometrics and its principal economist Brad Olsen.
Willis said next month's election is "all about the economy".
"Only through a strong economy can we end the cost-of-living crisis, lift wages, reduce interest rates and afford the public services we all rely on — like hospitals, schools and police," she said.
Labour responds
Labour finance spokesperson Grant Robertson responded to National's fiscal plan shortly after it was released.
“National’s fiscal plan was the opportunity for Nicola Willis to acknowledge what almost every commentator is saying: National’s tax promises don’t add up. Instead, she has doubled down on the $2 billion hole in her foreign buyer plan and is using it to prop up the overall fiscal plan,” Robertson said.
“This means even deeper cuts to public services which will inevitably extend into areas like Health, Education and Housing. To make matters worse, National have tried to make their numbers add up by cutting benefits to the tune of $2 billion. This will push more children into poverty.
"The Children’s Commissioner said that indexing benefits to wage growth as Labour has done was the best thing a Government could do to reduce child poverty. The inverse is true; the worst thing that National could do is take that away, and today they have done that.
“In a cost-of-living crisis it is morally wrong to put more kids in poverty to pay for the tax cuts of millionaires and property speculators."
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