Perspective with Heather du Plessis-Allan: This year's Budget doesn't go far enough

I don’t want to start on a bum note, but if you share my view that this country is in a hot mess financially, then this Budget is underwhelming, disappointing - you pick your epithet.

It’s called the growth Budget, but there's no growth in it. The only growth is a result of a tax incentive scheme which is a good idea - but doesn’t go far enough.

It lifts GDP by, get this, 1 percent over 20 years. What is that? Is that growth or a rounding error? 

In fact, the Budget is full of this kind of thing - good ideas that are only half baked.

Cutting 18 and 19 year olds off the dole and making the parents taking responsibility is a great idea - but it's so full of loopholes, so you can see exactly how those kids are going to get around the rules and stay on the dole.

Cutting the Government KiwiSaver contribution to rich people is exactly what should happen - but it should be cut to everyone.

The gas exploration money is exactly what needs to happen - but it's tiny, a couple of hundred million dollars in an industry that talks in billions.

Five billion dollars of savings and cuts - which is small. That's the same amount we rack up in interest payments on our debt in just 7 months.

So if you were hoping for something to turn this ship around, something that supercharges growth or slashes spending or really gets us out of the financial trouble we’re in - this is not it.

This is a budget of good ideas that don’t go far enough.

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Episode Transcript

Speaker 1 (00:00):
Look, I don't want to have to start the show
on a bum note. But if you share my view
that this country isn't a hot mess financially, then this
budget is underwhelming, I would say. Or you could say
it's disappointing, or you could say it doesn't go far enough.
You can pick your epithet. It's called the growth budget,
but I find the growth in it. For me, there
is no growth here. The only growth that we can
see is as the result of a tax incentive scheme,
which is a good idea but just doesn't go far enough.

(00:22):
It lifts GDP by get this, one percent over twenty years.
So what is that when you split it twenty ways?
Is that growth or is it now just a rounding error?
In fact, the budget is full of this kind of thing.
It's good ideas, Yeah, good ideas, but only half baked.
Cutting eighteen or nineteen year olds off the doll and

(00:43):
making the parents take responsibility is a great idea, but
it's so full of loopholes. You can already see exactly
how these kids are going to get around the rules
and stay on the doll. Cutting the government can we
save a contribution to rich people? Exactly what should happen,
but it should be cut to everyone. The gas exploration
money exactly what needs to happen, but it's tiny when
it's a couple of hundred million dollars in an industry
that talks in billions five billion dollars worth of savings

(01:05):
and cuts, which are small beer. That's the same amount
that we rack up five billion is the same amount
that we rack up in interest payments on our national
debt in just seven months. So if you were hoping
for something to turn this ship around, something that supercharges growth,
something that slashes spending or rarely gets us out of
this financial trouble that we're in, this is not it.
This is a budget of good ideas that do not

(01:27):
go far enough. For more from Heather Duplicy Allan Drive,
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