By RNZ

Labour has made few changes to its fiscal plan other than an already announced top income tax bracket change, saying it has set aside double what National would to deal with basic cost pressures.

Finance Minister Grant Robertson announced the party's fiscal policy on Thursday morning, saying it was a balanced plan that would carefully manage finances while maintaining public services and responding to Covid-19.

"There is no costless decision here, and we are not prepared to return to the approach that the previous National Government took which saw our hospitals and schools run down," Robertson said.

The plan estimates changes to income and digital services taxes would bring in about $2.6 billion over four years, which could be used over and above what was set out in the pre-election fiscal and economic update.

It also details more than $4.3b in new investments, including $480m in "unannounced policy, minor commitments and contingencies".

"Taking this spending into account, this leaves more than $21b for new spending commitments or cost pressure items across the four years. This will include our spending on ensuring that cost pressures are met for health and education and other areas of government expenditure," it says.

It also intends to retain $12.1b in contingency spending for Covid-19 but would aim not to spend it, as was assumed in the Pre-Election Economic and Fiscal Update (PREFU), with the aim of reducing debt faster.

The plan also identifies five principles for fiscal management to guide the party on spending decisions.

Robertson and Prime Minister and Labour Party leader Jacinda Ardern are expected to speak in Nelson on Thursday afternoon.

- RNZ