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NATIONAL’S TAX CUTS
JUST CRAZY
What did the PREFU tell us was available to spend over the next 3 years (OBERAC):
05/06 06/07 07/08 08/09 TOTAL
7,293 6,344 4,217 5,512 23,366
All figures $ Million
Where is that committed?
Over the next 4 years that is committed to:
New Zealand Superannuation Fund : $13.13 Billion
New Zealand Superannuation Fund : $13.13 Billion
Loans (Student Loans, etc): $3.28 Billion
Over the next 4 years that is committed to:
New Zealand Superannuation Fund : $13.13 Billion
Loans (Student Loans, etc): $3.28 Billion
Investment in hospitals, Crown entities, SOEs etc : $4.027 Billion
Over the next 4 years that is committed to:
New Zealand Superannuation Fund : $13.13 Billion
Loans (Student Loans, etc): $3.28 Billion
Investment in hospitals, Crown entities, SOEs etc : $4.027 Billion
Investment in assets (schools, roads, etc) : $7.09 Billion
Over the next 4 years that is committed to:
OBERAC
Investments already
committed
Balance
05/06 06/07 07/08 08/09 TOTAL
All figures $ Million
What is left?
548 -747-
2,615-
1,346-4,160
7,293 6,344 4,217 5,512 23,366
-6,745-
7,091-
6,832-
6,858-
27,526
Conclusion:
There is no uncommitted surplus.
Cost of National’stax cuts
Labour’s Family Tax Relief and
ECE
Total extra cost of National’s tax
cuts
05/06 06/07 07/08 08/09 TOTAL
Extra cost of National’s tax cuts over Labour’s spend
All figures $ Million
550 1,900 2,800 3,400 8,650
95 380 479 494 1,447
455 1,520 2,321 2,906 7,203
Where will the $7.2 billionhave to come from?
Two places:• Additional borrowing
• Cuts to expenditure
National’s borrowing
Increased borrowing
signalled by National
05/06 06/07 07/08 08/09 TOTAL
All figures $ Million
01,00
01,20
01,30
03,50
0
Still to find: $3.7 Billion
Spending cuts
Spending cuts already identified
Still to find through cuts
Total cuts needed
05/06
06/07 07/08 08/09 TOTAL
All figures $ Million
0 100 348 503 951
455 420 773 1,104 2,752
455 5201,12
11,60
63,70
3
SUMMARY
Extra costs of national’s tax cuts: $7.2 Billion
Requires:
Extra borrowing $3.5 Billion
Cuts to health, education or somewhere else $3.7
Billion
NATIONAL’S TAX CUTS
JUST CRAZY