Previous Govt Spent Too Much During Covid: Treasury

Previous govt spent too much during Covid: Treasury

Photo: Getty Images By Giles Dexter of RNZ The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released by the Treasury.

Treasury briefing points finger at government spending during Covid-19 pandemic

The briefing estimated the cost of the pandemic at $66 billion, among the largest responses globally.

The $66 billion Covid spend up: Treasury asks if NZ went too far

The briefing also notes that officials had urged the previous Government to pull the brakes on Covid-related spending after the initial shock.

Treasury report slams Labour's Covid-19 spending - Daily Telegraph NZ

A new Treasury long-term insights briefing recommends that New Zealand governments rely more on the Reserve Bank to manage economic cycles and use fiscal policy sparingly during future crises. The report implicitly critiques the Labour Government’s expansive Covid-19 response, which saw $66 billion in spending—much of it on projects not directly tied to the pandemic. Treasury warns that such discretionary spending is difficult to unwind, drives …

Treasury says $66 billion Covid-19 response shouldn’t be repeated

A long-term briefing insight document prepared by the Treasury says government should let the Reserve Bank respond to economic crises and only intervene where necessary