Fiscal holes, unfunded promises - economist not sure any of it matters
Economists are debating the necessity of an independent policy costings unit in New Zealand, with some arguing the country is too small for such a mechanism. The discussion follows the release of fiscal plans by major political parties.
Why it matters
The debate touches on government transparency and the credibility of election-year fiscal promises.
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New Zealand is too small for an independent policy costings unit which would serve little purpose, according to a right-leaning economist who previously criticised National's numbers.
National's fiscal plan unveiled on Monday included $1.2 million in funding every three years for the unit which would independently evaluate the costs of policies proposed by political parties at the election.
The party had tried to progress such a unit this term but was unable to get agreement from either New Zealand First or ACT - although National could theoretically have worked with Labour or the Greens, which have both long campaigned for similar but pricier approaches .
Labour's fiscal plan unveiled just over a week earlier committed to an "independent pricing authority" costing $6m every year.
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