Labour's fiscal plan has little changes other than an already announced top income tax bracket change, saying it has set aside double what National would to deal with basic cost pressures.
Finance spokesperson Grant Robertson announced the party's fiscal policy on Thursday, saying it was a balanced plan that would carefully manage finances while maintaining public services and responding to COVID-19.
"There is no costless decision here, and we are not prepared to return to the approach that the previous National government took which saw our hospitals and schools run down," Robertson said.
The plan estimates changes to income and digital services taxes would bring in about $2.6 billion over four years which could be used over and above what was set out in the pre-election fiscal and economic update.
It also details more than $4.3bn in new investments including $480m in "unannounced policy, minor commitments and contingencies".
"Taking this spending into account, this leaves more than $21bn for new spending commitments or cost pressure items across the four years. This will include our spending on ensuring that cost pressures are met for health and education and other areas of government expenditure," it says.
It also intends to retain $12.1bn in contingency spending for COVID-19 but would aim not to spend it as was assumed in the PREFU with the aim of reducing debt faster.
The plan also identifies five principles for fiscal management to guide the party on spending decisions.
Robertson and party leader Jacinda Ardern are expected to speak in Nelson on Thursday afternoon.
RNZ
