Tuesday, 2 December 2025

Austerity, what austerity?

 

"You may have heard a lot of stories about austerity. Consider that both the government and the opposition may want to convey the impression that it has happened, despite it very much not having happened.

"Throughout the 2010s (barring #eqnz), per capita real operating expenditure net of interest expenses ranged from $17,143 to $18,653 - with 2019's jump to $18,653 being well out of line with the prior track. Labour substantially increased spending under its wellbeing focus ...

"Per capita real operating expenditure net of finance cost has been above $21,000 since then; the provisional figure for 2025 is $21,648. ...

"The largest-spend category here by far is social protection [sic]: benefits and superannuation. ...
"Any giant shedding of government staff will show up in General Public Services. The austerity really stands out in this picture. Can't you see it too? ..."

 

~ Eric Crampton from his post 'The state of the books'

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