National government to borrow $40 billion over 3 years

TVNZ Press Release 22 March 2009 Prime Minister John Key has unveiled a new economic initiative to borrow $40 billion to help NZ through the recession and believes we will come out of it “reasonably aggressively” in a year’s time during an interview with Political Editor, Guyon Espiner this morning on TVNZ’s new political show Q+A. Points of interest: - PM said Govt would borrow $40 Billion over next 3 years - PM refused to commit to 2010 & 2011 tax cuts - PM believes NZ will be coming out of recession “reasonably aggressively” in year’s time after 2-3 quarters of negative growth - Treasury estimates tax cuts will mean a 5% reduction in Government revenue See transcription of full interview at http://www.scoop.co.nz/stories/PO0903/S00241.htm See also It’s Time for a New Monetary System for another possibility to government debt.