NATIONAL’S TAX CUTS JUST CRAZY. What did the PREFU tell us was available to spend over the next 3 years (OBERAC): 05/0606/0707/0808/09TOTAL 7,2936,3444,2175,51223,366.

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Presentation transcript:

NATIONAL’S TAX CUTS JUST CRAZY

What did the PREFU tell us was available to spend over the next 3 years (OBERAC): 05/0606/0707/0808/09TOTAL 7,2936,3444,2175,51223,366 All figures $ Million

Where is that committed?

Over the next 4 years that is committed to: 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 05/0606/0707/0808/09TOTAL All figures $ Million What is left? ,615-1,346 -4,160 7,2936,3444,2175,51223,366 -6,745-7,091-6,832-6,858-27,526

Conclusion: There is no uncommitted surplus.

Cost of National’s tax cuts Labour’s Family Tax Relief and ECE Total extra cost of National’s tax cuts 05/0606/0707/0808/09TOTAL Extra cost of National’s tax cuts over Labour’s spend All figures $ Million 5501,9002,8003,4008, , ,5202,3212,9067,203

Where will the $7.2 billion have to come from? Two places: Additional borrowing Cuts to expenditure

National’s borrowing Increased borrowing signalled by National 05/0606/0707/0808/09TOTAL All figures $ Million 01,0001,2001,3003,500 Still to find: $3.7 Billion

Spending cuts Spending cuts already identified Still to find through cuts Total cuts needed 05/0606/0707/0808/09TOTAL All figures $ Million ,1042, ,1211,6063,703

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