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”