This submission comments on select aspects of the Public Finance Amendment Bill.
The NZCTU opposes the removal of the wellbeing provisions from the Act. These were inserted in 2020 to make clear that the goal of fiscal policy is to support the wellbeing of New Zealanders. The wellbeing provisions help to remind governments of this fact, and in doing so, to avoid focusing narrowly on metrics of fiscal responsibility. Repealing these provisions would be a step backwards.
The NZCTU supports making a tax expenditure statement a legislative requirement and further recommends the tax expenditure statement assesses how much potential revenue is being lost to avoidance or evasion by broad tax type.
The NZCTU also supports the improvements the Bill will make to the transparency of the specific fiscal risks the Crown is exposed to and suggest the Bill go further and require that the government's long-term liabilities in health, education, and housing are assessed and made publicly available as part of the Budget documentation.
The submission also comments on several smaller amendments made by this Bill.
