Cullen’s fiscally-conservative budget

Many commentators focus on the increased spending by this Labour-led Government, suggesting that it’s a big spending administration – because the budget includes expenditure of about $54b. On this basis, Labour's supporters therefore suggest that it’s a generous and progressive Government, and similarly its critics suggest it’s a profligate and old-fashioned one. But the reality is that it’s neither. The all important indicator of government spending levels is the ratio-of-spending-to-GDP – and in this Government’s case, it’s still a very low ratio, and possibly still lower than the ratio that under the financial governance of Ruth Richardson. So in reality Labour is still running a very fiscally conservative/rightwing government.