New Zealand’s government spent $66 billion responding to COVID-19—$16 billion more than originally announced—much of it in ways Treasury now says were unnecessary and difficult to unwind.
A new Treasury report says the scale of discretionary spending was among the largest globally and left structural deficits that will burden future governments. It also warns against relying on outdated crisis responses and calls for clearer fiscal rules to prepare for future economic shocks.
In 2020, the Labour-led coalition government (which included the Greens and NZ First) announced a $50 billion COVID-19 response package.
Treasury now reveals that the final bill came in much higher, equivalent to around 20 percent of the country’s GDP….
NZ Ardern Government Warned to Curb COVID Spending, Report Reveals
