New Zealand should spend cautiously, fiscal rules expected – Finance Minister

div classBodysc17zpet90 cdBBJodivpBy Lucy Craymerp

pWELLINGTON Reuters – New Zealands finance minister said on Tuesday the government should continue to be careful about spending and flagged the introduction of new fiscal rules in the budget next month.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“Its really important that we use fiscal policy sensibly to be able to make sure New Zealand not only keeps a lid on debt but that we invest in the right things,” finance minister Grant Robertson told a news conference.p

pHe said new fiscal rules would be introduced at this years budget in May after some fiscal targets were previously suspended as the government responded to the COVID19 pandemic. p

pBut Robertson stressed that even as New Zealand must be careful with spending, infrastructure projects such as the overhaul of the countrys health system remains important. p

p“It is important that we dont cut our nose off to spite our face and take away funding,” he said.p

pNew Zealands central bank has raised interest rates at four consecutive meetings and signalled more hikes in coming quarters as it expects annual inflation to peak around 7 in the first half of this year.p

pRising costs have also prompted calls from opposition parliamentary members for the government to use fiscal policy to help temper inflation.p

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pp Editing by Jacqueline Wongp

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