National to increase NZ’s debt by $61 billion over 5 years
National to increase New Zealand’s debt by $61
billion over five years
Budget numbers reveal our national level of indebtedness will skyrocket by $61 billion over five years, which is an economic ticking time-bomb, says the Green Party.
“New Zealand's national debt will skyrocket by $61 billion over the five years from 2012 to 2017 according to figures in National’s own budget,” said Green Party Co-leader Dr Russel Norman.
“John Key said on the Thursday the next election will be about the economy. National’s failure to manage debt is a major risk to our economy and will hurt his electoral chances.
“The real story from Thursday’s budget is how indebted we will become under John Key and National. In 2012, New Zealand’s Net International Investment position was minus 70.7% of GDP of $208 billion, which means we owed $147 billion in net debt to the rest of the world.
“By 2017 National’s Budget projections show New Zealand’s Net International Investment Position will skyrocket to minus 80.9% of GDP of $257 billion, equating to $208 billion in net debt to the rest of the world.
“In just five years National will blow our level of debt to the rest of the world by over 40%. John Key is building our economy on debt, and history tells us that such a reckless economic strategy is likely to lead to collapse.
“The wafer thin surplus in the government accounts is marginal when you look at the real debt vulnerabilities in the New Zealand economy.
“The Green Party in Government would work to rebalance our economy and reduce debt. We would be responsible economic managers, unlike National and their debt monster.”