Cullen Creates $5.5 Billion Hole In Govt’s Finances

The Budget Tables show that the Government’s future financial position has deteriorated by a staggering $5.5 billion in the past six months ACT Finance spokesman Rodney Hide said today.

“The Government has taken a severe hit since the December Fiscal Update.

“Back then the Government was forecasting a need for additional borrowing over the next five years of $2.1 billion.

“The small print in the latest Budget figures shows that the Government’s now forecasting it’ll need some $7.6 billion (p.70, B2 & B3) in the same period.

“So much for a no-surprises Budget. What is Michael Cullen saying? That it’s not a surprise that he just destroyed $5.5 billion of taxpayers’ value?

“These new figures reinforce the fact Cullen is having to borrow to fund his super fund.

“This makes no sense at all. The surpluses would be far better applied to debt reduction but to see Michael Cullen actually increasing debt while supposedly ‘saving’ in his super fund is absurd.

“I don’t know how he is going to sell his scheme to the Greens and to the Alliance : Here we have Michael Cullen now borrowing in New Zealand to invest overseas!” Rodney Hide said.

ENDS

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