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Hi Friend,

Thanks again to the hundreds of supporters who have chipped in to get the National Debt Clock back on the road in the form of our "Hīkoi for Balanced Budgets" (we're calling it a Hīkoi so that even 1News will have no option but to cover it! 😉 ).

Rhys, Sam and some of the interns have been on the road, and we're on track to raise the funds to get the Clock around the South Island and then to Wellington before the Budget.

Thank you for making it possible!

More details on the routes and proposed dates here.

Nicola Willis's big pre-budget speech 🎤

Last week, we explained how politicians often say there are "cuts" to spending, when really they just mean the Government isn’t increasing spending as much as originally planned — not that it’s actually spending less than before.

Cue Nicola Willis, who yesterday announced to a Wellington business audience (yes, there is such a thing!) that she has adjusted what's called the 'operating allowance' for Budget 2025.

The operating allowance is the term used for the amount allocated to new spending. It's important because it effectively sets the new baseline for the following year (i.e. it's cumulative).

It was to be $2.4 billion, but now new spending will be "just" $1.3 billion (that's another $639 per household).

NZ Herald falls for it: a slower increase in spending is not a "cut" 🤦‍♂️

This morning's NZ Herald says it all: splashing "Cuts to save 'billions' for Budget". Nicola Willis's spin doctors will be very happy!

Don't be fooled Friend, the so-called 'cut' is merely a slowdown to the rate of increase of Government spending.

So while Nicola Willis deserves some credit for facing fiscal reality, let’s not kid ourselves. The spending's still going up.

Since 2017, Government spending adjusted for inflation has ballooned by 46 percent. That’s an extra $45 billion – i.e. $22,123.91 per household – being spent each year.

The chart the Beehive really want you to see ❤️

As the Speech was being delivered, your humble Taxpayers' Union started receiving messages from senior political staffers and Government MPs.

They sent us copies of the speech (you can read it here) and this chart posted onto X (formerly Twitter), which shows the various operating allowances in recent years:

We get the distinct impression, Nicola Willis really wants you to think that she's spending at a slower rate than Grant Robertson. 

But here's the chart the Beehive DON'T want you to see 👀

It's great that the pace of increase is slowing down, but it really doesn't reflect the seriousness of the situation.

According to the newly released International Monetary Fund Fiscal Monitor, New Zealand has the worst primary deficit of any advanced economy.

Click for larger version.

The change to the Operating Allowance announced yesterday brings us up *maybe* one or two places...

So ahead of the Slovak Republic and maybe Poland! Yippee. 👍 👀

The IMF report makes sober reading. In a guest post (re-published with permission) the Reserve Bank's former Head of Financial Markets, Michael Reddell, works through it.

Sound the klaxons – we have to raise the alarm before it's too late ⏰ 🚨

Friend, this is why we're on the road with the National Debt Clock Hīkoi for Balanced Budgets.

New Zealand isn't just living beyond its means, it's living beyond its means more than any other developed country!

The media are not sounding the alarm. It's up to us.

The thing about Government Debt is that it won't be Nicola Willis, Christopher Luxon, or David Seymour who will be around to pay for it. It'll be our kids and grandkids who'll be picking up the tab (with interest!).

So, something we've been working on in the background was how to address the increasingly bad hand that our younger ones are getting dealt.

Between our county's crippling debt, soaring living costs, and crushing tax burden, some are saying that New Zealand’s youth are “Generation Screwed”.

To take the fight for lower taxes, less waste and more accountability to universities, the Taxpayers’ Union has been rallying students who believe in the mission. We have 25 student volunteers now currently taking the mission to five universities through meet-ups to discuss government waste, advocacy stalls, and to turn the financial future of New Zealand’s “Generation Screwed” around.

In the few months since we launched, hundreds of students have already joined Generation Screwed, and have held more than ten events to spread the message of limited government.

By engaging the next generation to stand up to the Government and take back the universities from the communists left, the Taxpayers’ Union isn’t just concerned about the war on waste today, but focused on building up a group of taxpayer heroes to fight the war on waste for tomorrow.

Like all our work, Generation Screwed is made possible by those who generously chip-in. To support the next generation or sponsor a student intern, click here to make a donation, or contact our Fundraising Manager.

Peter Williams hosts Taxpayer Talk: Hon Ruth Richardson on Budget 2025 🎙️

This week on Taxpayer Talk, Peter sat down with Ruth Richardson, Minister of Finance during the National-Bolger Government, and catalyst of major economic reforms during the 90s.

One of New Zealand's most respected Ministers of Finance, Ruth remains a deep thinker on the country’s dangerous fiscal position and how we can extract ourselves from it.

With this year’s Budget only a few weeks away, she sets a path back to fiscal sustainability and tackles universal superannuation, the health system and the corporate tax rate.

You can listen to the episode on our website, or on Apple Podcasts, Spotify, iHeart Radio and other good podcast apps. 

Thanks for your support.

James Ross Policy & Public Affairs Manager New Zealand Taxpayers’ Union

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