The problem with all these wonderful ideas is it will drive down the NZ govt's net wealth.
Which will lead to credit rating downgrades moreso than a bit more debt (backed by strong quality assets).
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The problem with all these wonderful ideas is it will drive down the NZ govt's net wealth.
Which will lead to credit rating downgrades moreso than a bit more debt (backed by strong quality assets).
Well the idea was to restart patments to the NZ Superannuation Fund once net debt was back at 20%. Labour said stuff that and have borrowed heavily to contribute to it, along with all their other borrowing. And now we are set to pay an eye-watering interest bill on all this debt. And you blithely just dismiss this as 'a bit more debt'. Unreal.
Ignoring it? What? No I'm not. That's the problem - universal super. It needs to go. And it needs a government to outline a plan as to how 'increased KiwiSaver + means-tested super' will, over time, replace it. The Super Fund only makes the situation worse, it's so much money sitting there while the government has so much debt, and also it allows the fantasy of keeping universal super in place.
Seymour said in a media release the update showed that within three years spending will be 11 billion higher than forecast last year which would lead to even more borrowing with net debt forecast to reach $100 billion by 2025.
"More debt means more interest. The interest bill is forecast to be $9.2 billion by 2026, exactly twice the $4.6 billion expected in BEFU 2022.
"New Zealand is now spending more as a country on interest than primary and secondary school education, and twice as much as is spent on police, courts and corrections combined. Kiwis' taxes aren't paying for public services, they're paying for Labour's mismanagement."