Labour finance spokesperson Grant Robertson said the savings, cuts and project costs in the Government’s newly released mini-Budget “don’t add up” and the "self-funded cuts" have been “labelled a risk” by Treasury.
He said today was a test for the new Finance Minister Nicola Willis, which she has “failed”, leaving “New Zealander’s in limbo”.
Both the mini-Budget and Robertson’s reaction come in the wake of a Treasury warning of a slowing economy.
Willis today revealed the Government has found $7.5 billion in savings, with cuts coming from a range of work the previous Labour government had underway.
Since becoming Fnance Minister, Willis has accused the previous Labour government of "economic vandalism" and says they made a mess of the government books.
But Robertson denied this in his response to the Government’s plan announced today.
"The New Zealand economy is around 7% larger than before Covid; unemployment has been at record lows; wages are rising; and our debt levels are lower than most of the economies we compare ourselves too.
"It has been a tough year for New Zealanders with cost of living pressures as inflation peaked. But it is now on a downward track."
Robertson said there is "no information" on the costs of the coalition agreements Willis' Government has agreed to.
"There are some large commitments in the agreements including funding for prisons, increased funding for IRD, police, St Johns, aged care and more," he said.
"It is farcical to claim that there are any surprises in the Government’s books which have changed little since the Pre-Election Fiscal Update in September.
"Just like every government, there is a mixture of baseline and time-limited funding in the Budget. In 2017, Labour inherited a large amount of time-limited expenditure. It is up to the government whether that needs to be carried on or not in future Budgets."
Green Party co-leader and finance spokesperson James Shaw said the National Party has "once again" shown a "breathtaking willingness to say one thing during an election campaign and then do the exact opposite when in government".
"It is no good for National Ministers to parrot their talking points about supporting people to make ends meet, only to make decisions that will do the exact opposite."
Shaw said the decision to axe 20 hours free early childhood education to two-year-olds will "put families under huge pressure".
"Thousands of children will now not be able to have the best possible start in life. Parents all over the country will be forced to cut back on food to pay the bills.
"I am also very worried that the future of free school lunches has been put in doubt, with National identifying a programme that makes sure children do not go hungry as a 'fiscal cliff'.
Shaw said the Government was also going to make it more expensive for young people to take a bus or train.
"Everyday activities like going to the doctor, taking the kids to school, or visiting friends and family will now be more expensive for thousands."
Te Pāti Māori said the Government had over-promised and under-delivered with its "mini-Budget of cut backs".
Co-leader, Debbie Ngarewa-Packer, said "This budget again fails to acknowledge how tough people are finding it. It is simply a budget of cut backs to ensure they can look after their rich mates.
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While the rest of the country spends this week quietly panicking over last-minute Christmas preparations, Nicola Willis is concentrating on delivering a mini-budget, her first big hit-out as the country's new Finance Minister.
December 18, 2023
“They’re touting this budget like they’ve stumbled across a pot of gold under a rainbow. I’m disgusted."
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