Economy in disarray

The recent Budget issued by the Government confirms that nothing has changed since Jacinda Ardern was either pushed or jumped ship (it doesn't matter which).

It was a vote-catching Budget with an extraordinary feature in that the Government was borrowing further, which is further exacerbating inflation.

Ironically, within a week the Reserve Bank had to increase the Official Cash Rate in an effort to compensate.

No relief for low to middle income earners who have been facing the consequence of income tax brackets remaining unchanged for some 10 years. Now Prime Minister Chris Hipkins says he will look at it eventually – but note that such a move will be inflationary.

Yet it is the Government itself that had the choice of compensating for such inflation by reducing its own inflationary expenditure.

The consequences of excessive and wasteful expenditure by the Government during the
past five years can be seen in almost every part of our society.

Bill Capamagian, Tauranga City.

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