30 Mar 2010

IMF urges NZ to make bigger spending cuts

9:08 am on 30 March 2010

The International Monetary Fund is urging the New Zealand Government to make bigger cuts to its spending.

But Prime Minister John Key says the Government is not prepared to go as far as the IMF suggests.

The division chief of the IMF's Asia and Pacific Department, Ray Brooks, says it is good that the Government is getting its books into order, but spending cuts should go further.

The IMF would like to see the Government's books moving into surplus sooner than forecast, he says.

The Prime Minister says the Government has already doing a good job controlling its spending and the sorts of cuts the IMF would like to see involved Working for Families, interest-free student loans and subsidies for visits to the doctor.

However, Mr Key says the National Party had vowed not to touch those policies during the election campaign and it is not about to break its promises.