Latest / The Kākā by Bernard Hickey
Treasury warned Govt lower debt limits meant less ‘productivity-enhancing investment’
Kia ora. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Friday, September 13:
* Treasury told the new Government it considered a 50% net core crown debt limit fiscally prudent under the Public Finance Act (PFA), but the National/ACT/NZ First coalition decided in Budget 2024 to go ahead with a 20%-40% target range.
* Treasury warned the new lower 20%-40% range might undermine the coalition’s aim of building a stable public investment pipeline and risked “passing up on productivity and growth enhancing investments.”
*…
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