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Government floats new deficit measure, Labour accuses National of 'shifting the goalposts'

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          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Had the change been implemented in the last fiscal year, the deficit would have been much smaller. ACC alone contributed $4.1b to the OBEGAL deficit - a third of the total.
The New Zealand Government is considering a new measure for assessing fiscal deficits, focusing on the structural deficit rather than the traditional headline deficit. This shift aims to provide a clearer picture of the government's long-term financial health by excluding temporary economic fluctuations. Labour has accused the National Party of "shifting the goalposts" with this change, suggesting it's an attempt to make their economic management look better ahead of the election. Finance Minister Nicola Willis has defended the move, arguing that understanding the structural deficit is crucial for sustainable fiscal policy. Critics, however, see this as an effort to downplay the current high levels of government spending and borrowing. The debate highlights differing views on economic transparency and the best metrics for evaluating government financial performance.

Read the Full The New Zealand Herald Article at:
[ https://www.nzherald.co.nz/nz/politics/government-floats-new-deficit-measure-labour-accuses-national-of-shifting-the-goalposts/34MGF4BMQNC7TCUQ2BHDPINZ6M/ ]