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Just a day after entering a recession, New Zealand is seeking to quickly recover its economic crisis as the country’s opposition National party vowed “significant” tax cuts.

“Throughout history, severe downturns have been a time when generational investments have been made that help set up future growth. National will make these much-needed historic investments,” opposition finance spokesperson, Paul Goldsmith said.

Workers could save around NZ$50 a week through the promised tax cuts. As consequence of the pandemic, thousands of people lost ended up unemployed with New Zealand’s sectors struggling to keep up with the current challenges. 

The proposed tax cuts are set to amount to around $4.7 billion, whilst another $31 billion will be invested in the transport sector in the coming decade. Moreover, other investments will include: $1.1bn on education, $800m on health, $900m on social development and $170m in law and order.

“But, unlike Labour, we recognise the need to act responsibly for future generations. The best path back to prudent debt levels is through an absolute focus on economic growth and disciplined spending, not higher taxes,” Goldsmith added.

On the other hand, Labour’s finance minister, Grant Robertson stated, “National is a shambles, with multiple leaders, incoherent policy this year and growing factions. They both want to increase spending, reduce revenue and dramatically reduce debt. You can’t do all of those things at once credibly and I think their plan is lost somewhere in that triangle.”

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