Treasury fires yet another warning shot across Government bows

On Friday, Treasury’s latest Investment Statement delivered yet another warning that the Government’s current fiscal path isn’t sustainable. Taxpayers’ Union spokesman James Ross said:

“Treasury saying the Government’s balance sheet is heading for deterioration is not-so-subtle code for living well beyond our means. Spending will keep growing far faster than revenue, and there’s no plan to bring things back under control.”

“We’re watching the Government walk straight down the same dark path Britain has taken. Britain’s response to a budget crisis has been to hammer taxpayers, pushing investment and high earners overseas, and trapping the economy in a downward spiral. New Zealand can’t afford to repeat that mistake.”

“Spending is still higher than when the last Government left office, even after Labour’s spending blowout. The Finance Minister still won’t make the hard calls to right the ship. If Minister Willis won’t listen to Treasury’s warnings, the obvious question is: who is she listening to?”