Robertson changes the debt target and extols the fiscal virtues of flexibility

Finance  Minister Grant Robertson  drew  diverse — and conflicting — responses to his announcement in a pre-budget speech  that he has moved  the Labour-led Coalition’s  debt  target  from 20%  of GDP  to  a  range  of  between 15%  and 25%,  in  the interests  (he  said) of greater   flexibility to  economic conditions.

From  the Left, the CTU  welcomed  the  move  but  said the government should  go  further and  faster in  relaxing  the  Budget  Responsibility Rules  because

“ … it is neither prudent nor responsible to privilege exceptionally low debt levels over major social, human, environmental and economic needs”.

From  the Right,  National’s  Amy  Adams  insisted Robertson had “thrown in the towel” on the rules  and is  loosening the purse strings by tens of billions of dollars. Continue reading “Robertson changes the debt target and extols the fiscal virtues of flexibility”