Reuters is based in New Zealand’s capital city, Wellington. On Tuesday, New Zealand’s finance minister said that the government should still be careful with its money, and he said that new fiscal rules will be put into place in the budget next month.
When we use fiscal policy, we need to make sure New Zealand not only doesn’t get into debt but also invests in the right things. Grant Robertson said this at a news conference.
He said that new fiscal rules would be put in place in this year’s budget in May after some fiscal goals were put on hold as the government responded to the COVID-19 pandemic.
Robertson, on the other hand, said that even though New Zealand needs to be careful with its money, projects like the overhaul of the country’s health system are still important.
We should not cut our nose off to spite our faces and lose money, he said.
New Zealand’s central bank has raised interest rates four times in a row and said it expects inflation to hit 7% this year in the first half of the year.
Costs are rising, which has also led to calls from opposition politicians for the government to use fiscal policy.
