It’s a simple, simple Budget. It’s only goal was bringing down the debt track. This is the scary-o-graph showing the debt track that the government was heading towards, with the alternative line showing the impact of the policy changes:
In 2011/12, the reduction in spending will be worth about as much as stopping contribution to the NZ Super Fund. By 2022/23, it’ll amount to a $9.8b reduction in spending a year.
To put it into perspective, the Super Fund contribution will be worth $2b that year, and the tax cuts that have been deferred would cost $840m.
This graph shows how much of the reduction in debt comes from this "reduction in future operating allowance" line (as a % of GDP):
Bottom line: Things are bad. Making things less bad is possible, but there are consequences. Harden up.