Finance Minister Bill English has signalled that Budget 2012 is going to be pretty tight, with little room for new spending outside the areas of education and health. Few would argue the government having prioritised those two areas for extra investment.
John Key argued yesterday that a zero budget wasboth necessary and the right way forward for New Zealand; Stuff reports:
Prime Minister John Key says elections in Europe show the National-led Government is right to hand down another zero Budget this year, despite rising unemployment.France's president Nicolas Sarkozy is out of office after one term following his defeat by socialist Francois Hollande.He is the latest European leader to be tossed out of government after voter anger at spending cuts.Austerity in Greece has led to riots on the streets and a vote there today is considered critical to pulling world markets out of financial crisis.Key this morning said the result in France showed the Government here was taking the right action."Which is deal with your problems up front and don't let them get too bad," he told TVNZ's Breakfast programme."If you look at Greece where you have the really big push back against austerity, they have really lost control of their own country."People wanted governments to spend more but borrowing put more debt on future generations."That's a really irresponsible thing to do."
And it seems that the electorate is comfortable with that. Alongside the story above, Stuff was running a poll; here are the results:
As can be seen above, more than 80% of almost 10,000 respondents agree with John Key and Bill English. That will be of little comfort to the parties that want to borrow heavily, spend freely and tax those who already pay the greater part of personal income tax in New Zealand.