Government may cut National's 'unbudgeted' projects as it runs ruler over the books

Prime Minister Jacinda Ardern said "The lens we're applying there is: is it one of our priorities or not?" (Photo: Jerry Yelich-O'Connor)

Prime Minister Jacinda Ardern says her government may scrap projects announced by the previous administration, some of which didn't have money set aside for them in the budget.

At the post-Cabinet media conference yesterday afternoon, Ardern said that all her ministers were working through their appropriations to see whether commitments made by the previous government are "in line with what we would like to achieve as a government", and she had been surprised by the lack of budgeting by the last government.

"There's no doubt that every day in office brings a new surprise of things that I would have had an expectation that the past government would have budgeted for - particularly where they may have announced something - but didn't," Ardern said. "Some of the expectations we had were that where announcements had been made around capital expenditure, that that would have been set aside, but that hasn't always proven to be the case."

"The lens we're applying there is: is it one of our priorities or not? We've already given some examples, for instance in roading, we don't consider it a priority in line with what we want to achieve as a government."

Ardern said she was confident the government would meet its pre-election budget responsibility commitment to reduce net core Crown debt to 20 percent of GDP within five years.

"We have commitments we have made, which we will be factoring into both the next budget and the half-yearly fiscal update," she said. "As we've worked through them, we're confident we can still maintain our budget responsibility rules."

Ardern said the government would give more detail on how its $1 billion regional development fund will be funded, whether from capital expenditure or operational expenditure, at the half-yearly fiscal update (HYEFU) on December 14.

(BusinessDesk)


20 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Post Comment

20 Comments & Questions

Commenter icon key: Subscriber Verified

Dont you mean December 14 ? Or did miss Ardern say that date.

Reply
Share
  • 0
  • 0

We have corrected the date, which was a reporting error.

Reply
Share
  • 0
  • 0

So it's back to one horse tracks. No surprises there then. I wonder how long it will be before taxes are increased for anyone earning over $50k a year? Expect to see tramps and hobos being limo driven to soup-kitchens next. Then the brain dead being paid more to have at least 10 kids, with no thought about the cost of bringing them up, because the Labour govt will provide everything with borrowed money.
Lets see how well Labour goes on to balance their books.

Reply
Share
  • 0
  • 0

You will have to get your income under 50 k a year.

Reply
Share
  • 0
  • 0

Such an intelligent, fact based, well researched criticism.

Reply
Share
  • 0
  • 0

No it's not really. It's just an observation from a working class guy that's seen all this nonsense from a Labour govt before. Not the hobo bit, of course. But you keep voting for them, while at the same time kidding yourself they're doing a good job... good job of borrowing that is.

Reply
Share
  • 0
  • 0

Crazy Crazy to undo a future road investment. Every country in the world is behind or in a bad place to create new roads because of congestion. New roads are vital NOW and for the future for un-leaded fuel vehicles to electric vehicles and as NZ grows in the future months / years trucks need new and up graded GET ahead of the A game andbplease DO NOT waste good dollars on non returnables.
What a position NZ has right now and will grow superbly for all, as long as the new Goverment gets its head in the right direction, if now just about every one we talk to are saying an early election will be needed to stop poor investment IF that is the way JA has to go with the back room meetings push JA ???

Reply
Share
  • 1
  • 1

In other words they are scrambling for money

Reply
Share
  • 0
  • 0

Yeah, and guess where they're going to go to get it. You know where, it's where that sneaky feeling in the back of your mind is telling you where it's going to come from, your bad pocket.

Reply
Share
  • 0
  • 0

Well Ivan thats what happens when you vote for this lot.

Reply
Share
  • 0
  • 0

Don't put that on me. I didn't vote for them.

Reply
Share
  • 0
  • 0

So this is the missing $11 billions that Steven Joyce was hiding

Reply
Share
  • 0
  • 0

Landlords provide tenants billions of dollars of housing that the taxpayer does not have to pay for.

Labour wants to destroy Landlords with ongoing bullying the latest is ring fencing tax losses.

The Rental Crisis is a huge problem with Landlords giving up resulting in a lack of rental housing for a large proportion of New Zealanders.

Reply
Share
  • 0
  • 0

Lets face it. they are out of their depth. Didnt figure on being Government until 4 weeks out from election.

Now unprepared. Will tax borrow and spend . Expect to see large deficits with nothing to show for them.

They will squander the $2 Billion plus surplus in next to no time on their mad cap schemes.

They have no fiscal discipline. Many households have better budget management than this lot.

Reply
Share
  • 0
  • 0

The 2B surplus trumpeted is nothing more than window dressing for the naive, to distract from the 50B in net debt racked up behind the scenes even after flogging off billions of $'s of some of the govt's best dividend producing assets for a song, contributing next to nothing to the super fund, slashing kiwi saver govt contributions in half, whilst having had 5 years of economic boom times, including those of the CHCH rebuild, often used as the debt excuse, and letting in hundreds of thousands of immigrants to prop up their tax take. Lousy short term trader management, when the country needed long term solutions. You are easily impressed.

Reply
Share
  • 0
  • 0

If anybody here and that includes anybody in the NBR itself thinks that Labour governments, including this one, are about growing national wealth then they are deluded. Labour governments do not grow national wealth via the established and proven mechanisms of the market, private enterprise, and private property, they, in fact, diminish it.

Reply
Share
  • 0
  • 0

I recommend actually reading up on NZ's history.

Reply
Share
  • 0
  • 0

History is just that, history - backward looking. You cannot compare the current labor government to those that have past.

Reply
Share
  • 0
  • 0

Read up on NZ's history of growth, recessions etc. and the relative performance of different governments left and right. It's nothing like what Steve suggests, basically.

Reply
Share
  • 0
  • 0

Labour and Winston do not have the ability to 'grow the pie'. As Socialists they want to share the pie in smaller bits - code language for spending, borrowing, subsidising and then taxing once the kitty is spent. The paradox of left wing economics is that the poor end up worse off, starting with more expensive costs of living. Have you visited the petrol pump lately. Might the lower exchange rate be a factor? That's nasty neo-liberalism for you.

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6887 0.0046 0.67%
AUD 0.9152 0.0039 0.43%
EUR 0.5848 0.0034 0.58%
GBP 0.5141 0.0031 0.61%
HKD 5.3789 0.0387 0.72%
JPY 78.2360 0.5410 0.70%

Commods

Commodity Price Change Time
Gold Index 1245.6 -0.750 2017-12-08T00:
Oil Brent 63.4 1.240 2017-12-08T00:
Oil Nymex 57.3 0.680 2017-12-08T00:
Silver Index 15.7 0.021 2017-12-08T00:

Indices

Symbol Open High Last %
NASDAQ 6859.9 6870.5 6812.8 0.40%
DJI 24263.3 24330.1 24211.5 0.49%