Surplus Allows For More Government Spending
The Council of Trade Unions is calling on Government to spend more of the larger than expected fiscal surplus on social development.
“Tomorrow’s fiscal update will announce that Government debt is $5 billion below target and more than $1 billion below forecast,” said CTU president Ross Wilson.
“These are very good results and the size of the surplus means there is room for more quality expenditure,” he said.
“The CTU acknowledges that Government wants to be fiscally responsible and could be reluctant to add to baseline spending which would be hard to maintain when revenue falls,” Ross Wilson said. “Nor would it want to over-stimulate the economy.
“But those concerns can be addressed by directing some of the surplus to social development projects that are for a fixed period,” he said.
“Child poverty, literacy and skill development are areas where there is a real need for social investment.
“Quality projects in these areas could be of
real social and economic benefit.”