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Labour Targets 33% GDP Crown Spending, 20% Net Debt

8/28/2026

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Story summary
  • Labour Party unveiled a fiscal strategy targeting Crown spending at 33% of GDP and net debt at 20%.
  • Economist Cameron Bagrie noted net debt has risen under two successive New Zealand governments, indicating a trend.
  • Bagrie said Labour will introduce a gains tax and fiscal drag to raise $3 billion over four years.
  • He warned that scepticism remains despite possible public acceptance of higher taxes.