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Taxpayers are expected to pay down the track for a large jump in Government spending.
The Government's giving itself an operating allowance of $6 billion in next year's Budget, possibly the highest in history.
Former National Finance Minister, Steven Joyce, told Mike Yardley the books are improving because inflation is going up, which is bringing in more tax for the Government.
“Kiwis are getting squeezed both ways if this prediction comes true, they’ll be paying more in tax and they’ll have higher inflation to deal with in terms of cost of living.”