HYEFU preview: Pre-emptive blame game ahead of opening of the books

The government and opposition are pre-emptively playing the blame game ahead the financial books being opened later today.

The Treasury will today release its half-year economic and fiscal update (HYEFU), which lays bare the state of the economy and the Treasury's outlooks and forecasts.

It is widely expected to show that a sluggish economy and weaker tax take will lead to bigger deficits for longer.

Economists are predicting a budget surplus will not happen until 2028-29 - a year later than forecast in May's budget - and the borrowing programme will be lifted by another $6 billion over the next three to four years.

On Monday, the Prime Minister did not want to get ahead of what HYEFU would show, but acknowledged that economic conditions were challenging.

"We are spending money carefully, and that is important, and that work will continue next year at pace, and for the rest of the time were are, frankly, in government," Christopher Luxon said.

He said things would be worse if the government had not got spending under control.

"I think if we hadn't made the fiscal adjustments that we have made, you'd have deficits running out a lot longer than what we've seen today, under the previous spending track."

Labour leader Chris Hipkins said the government could no longer blame the previous government for its decisions.

"The decisions that they're making are taking the country backwards, things are getting worse under this government's leadership. It's well and truly time for them to stop blaming everybody else and to start accepting responsibility for the consequences of their own decisions," Hipkins said.

Put to him that his government often blamed the prior National government for certain decisions, Hipkins said it depended on the context.

"I don't think we ever did it to the extent that this government do. Honestly, if you ask Christopher Luxon whether he's having a good day or a bad day, he'll say 'I'm having a bad day and it's all Labour's fault.' The truth is, he blames us for everything, including the consequences of decisions that they have taken."

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