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Government's shift in debt target 'makes sense'

Author
Newstalk ZB staff,
Section
Audio,
Publish Date
Thursday, 23 May 2019, 5:59PM
(Photo / Getty)

Independent economist Cameron Bagrie joins Heather du Plessis-Allan to talk after the Government announced a shift in debt target.

The Government has eased self imposed debt targets, with finance minister Grant Robertson raising his allowance to an upper limit of 25 per cent of GDP by 2021-22.

At the moment the Government are aiming to keep GDP at 20 per cent.

Robertson says this gives the government more room to move if necessary.

But National's Amy Adams feels Robertson is waving the White Flag, saying this is not wiggle room it is Grant Robertson giving the government license to borrow more money

Bagrie says it was a logical decision to make.

"There's nothing magical about 20 per cent, I think it's more pragmatic move to a range that gives a bit of flexibility."

ON AIR: Saturday Morning with Jack Tame

9AM - 12PM