- Hon Nicola Willis
The latest set of accounts show the Government has successfully checked the runaway growth of public spending, Finance Minister Nicola Willis says.
"In the previous government's final five months in office, public spending was almost 10 per cent higher than for the same period the previous year.
"That is completely unsustainable and helps to explain why the Reserve Bank had to hike interest rates to bring inflation back under control.
"In the equivalent period last year, government spending was less than 2 per cent higher than for the previous year.
"That shows the steps the Government has taken to restore respect for public money have worked.
"This Government is committed to improving public services and to investing for the future, but we will not be wasting public money like the last government on daft schemes and projects that have no chance of coming to fruition and only impose extra costs on families and businesses.
"Our focus is on unlocking New Zealand's potential by growing the economy to provide greater opportunity for businesses, households and individuals."
The Financial Statements of the Government for the five months to 30 November 2024 show government spending was 1.9 per cent higher than for the same period the year before. The equivalent figure for the previous year was a 9.8 per cent increase.
Government expenditure and revenue for the five months to November 2024 was broadly in line with the forecasts in December's Half Year Economic and Fiscal Update.
Core Crown revenue was in line with forecast at $54.9 billion. Core Crown expenses were $200 million lower than forecast at $57.8 billion.
