Questions on NZ stimulus

Bill English says it is now time for New Zealand to begin pulling back from its stimulus measures.  The RBNZ also says that they won’t lift rates because they expect fiscal stimulus to be withdrawn.

However, I have a question.  Other then the cycle way (which will still be constructed) and permanent tax cuts (which won’t go away) what stimulus did we actually take on?

If this is the only stimulus we did, and we are not withdrawing it, then isn’t the statement that we will withdraw unnecessary stimulus absolutely meaningless.

So, what DISCRETIONARY spending did the government add solely because of the recession?  [automatic stabilisers do not count – as the economic cycle deals with them itself]

7 replies
  1. StephenR
    StephenR says:

    Hmm, comment didn’t appear. Again:

    “what stimulus did we actually take on?”

    Does bringing forward some infrastructure spending count?

  2. Miguel Sanchez
    Miguel Sanchez says:

    Intrastructure spending was budgeted for the next five years; home insulation subsidies for the next four. Broadband spending is allocated over the next 10 years. If anything we’ve got more stimulus to come, given how little has actually been spent yet. The only thing I can see that could plausibly count as a ‘withdrawal’ of stimulus is smaller increases in the operational spending allowance in coming years.

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