BusinessNZ supports the NZ Initiative’s call for greater fiscal discipline by government.

The NZ Initiative has called for the government to be subject to more fiscal rules, and for the establishment of a fiscal council to monitor government proposals for taxing and spending.

BusinessNZ Chief Executive Phil O’Reilly says there are immense pressures on politicians to tax and spend unsustainably, and more fiscal rules would help them better withstand those pressures.

“We do have reasonably good level of transparency because of rules already in the Public Finance Act. For example the rules make Treasury accountable for accurate fiscal projections and the Minister of Finance accountable for ensuring Treasury is fully informed about the government’s fiscal decisions. This has helped reduce the problem of loose spending based on unduly optimistic growth projections.

“Our Public Finance Act already has rules governing debt levels and balanced budgets, but these need to be supplemented by rules on taxing and spending levels.”

Mr O’Reilly said an independent fiscal council to monitor and report on government fiscal decisions would help further discipline in this area.Contact Phil O’Reilly 04 4966552 or KathrynAsare 021 555 744

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