NATIONALS TAX CUTS

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NATIONALS TAX CUTS
JUST CRAZY
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What did the PREFU tell us was available to spend
over the next 3 years (OBERAC)
All figures Million
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Where is that committed?
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Over the next 4 years that is committed to
New Zealand Superannuation Fund 13.13
Billion

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Over the next 4 years that is committed to
New Zealand Superannuation Fund 13.13
Billion Loans (Student Loans, etc) 3.28 Bil
lion

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Over the next 4 years that is committed to
New Zealand Superannuation Fund 13.13
Billion Loans (Student Loans, etc) 3.28 Bil
lion Investment in hospitals, Crown entities, SOE
s etc 4.027 Billion
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Over the next 4 years that is committed to
New Zealand Superannuation Fund 13.13
Billion Loans (Student Loans, etc) 3.28 Bil
lion Investment in hospitals, Crown entities, SOE
s etc 4.027 Billion Investment in assets (scho
ols, roads, etc) 7.09 Billion
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What is left?
OBERAC Investments already committed Balance
All figures Million
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Conclusion
There is no uncommitted surplus.
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Extra cost of Nationals tax cuts over Labours
spend
Cost of Nationalstax cuts Labours Family Tax
Relief and ECE Total extra cost of Nationals tax
cuts

All figures Million
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Where will the 7.2 billionhave to come from?
Two places

• Additional borrowing

• Cuts to expenditure

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Nationals borrowing
Increased borrowing signalled by National
Still to find 3.7 Billion
All figures Million
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Spending cuts
Spending cuts already identified
Still to find through cuts Total cuts needed

All figures Million
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SUMMARY Extra costs of nationals tax cuts
7.2 Billion Requires Extra borrowing 3.5 B
illion Cuts to health, education or somewhere
else 3.7 Billion
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NATIONALS TAX CUTS
JUST CRAZY