Newstalk ZB: Oliver Hartwich on ACT’s plan to cut spending
Dr Oliver Hartwich joined Ryan Bridge on Newstalk ZB to assess ACT’s manifesto, which proposes $22 billion in savings over four years.
He said it stands apart because ACT is the only party that wants to shrink government back to 2017 levels, while the other parties merely promise to cut debt and return to surplus. Government spending has climbed from 28.5 percent of GDP in 2017 to nearly 33 percent, he noted, yet few people feel they’re getting better services for it, so it’s fair to ask whether lower spending could deliver better results. He warned that most voters haven’t grasped how difficult the fiscal position is, pointing to Treasury projections that debt could reach 200 percent of GDP by 2065 if nothing changes. A country regularly hit by natural disasters, he argued, needs a fiscal buffer to cope.