23 Jul 2018

Calls to lift govt spending constraints grow louder

From Morning Report, 7:15 am on 23 July 2018

The government's being warned it has no chance of fixing rundown public services unless it ditches its self imposed spending rules. Under its budget responsibility rules, the Labour-led coalition has pledged to keep spending at 30 percent of GDP, and reduce net debt to 20 percent of GDP by 2022. Critics have baulked at the targets, arguing rising wage demands from public servants, underfunded mental health services and dilapidated hospitals and schools all need attention now. RNZ economics correspondent, Patrick O'Meara reports.