Labour Pledges Surplus Return by 2029/30, Restores Reserve Bank Mandate

New Zealand's Labour party has promised to return the country to surplus by the 2029/30 financial year, according to its recently released fiscal strategy. The party also plans to restore the Reserve Bank of New Zealand's dual mandate, which focuses on both inflation control and employment levels.

The current Government uses a modified measure called OBEGALx, which strips out ACC deficits, to forecast a surplus in 2028/29. However, Labour says it can balance the books under the original OBEGAL measure by 2029/30. The party aims to reduce net debt down to 20% of GDP 'over time' and maintain current levels of core Crown expenses at around 33% of GDP once its capital gains tax is fully implemented.

Labour leader Chris Hipkins criticized the current Government for high unemployment levels, saying 'National came in promising to fix the economy. Instead, unemployment is up, businesses are struggling and everything costs more.' He claimed Labour will get the books back into shape without making life harder for New Zealanders or cutting essential services.