The Prime Minister says promised tax relief is fully funded but is refusing to reveal whether the government is planning any borrowing in the upcoming Budget.
Christopher Luxon faced questions over his tax plans on AM on Tuesday after an OECD report said the government must work to lower debt and any tax cuts should be fully funded, instead of relying on borrowing.
AM co-host Lloyd Burr asked Luxon whether his government was planning any borrowing at all in the Budget, but the Prime Minister wouldn't be drawn on it.
"What we have said from the beginning is our tax relief will be fully funded," Luxon said. "We've found savings, we've actually found new revenue to raise that, and as a result we are not borrowing for tax relief and also that is the less inflationary pathway.
"What's good in that report is that a lot of the things we've focused on to grow our economy – making sure we have a world-class education system, embrace science and technology, get rid of the red tape, have more competition in the markets, international connections to the world and modern and reliable infrastructure are the things we are working on for the long term growth of New Zealand," he added.
When Burr asked whether the government will be borrowing at all in the Budget, Luxon said his focus is on getting rid of wasteful spending.
But he warned they couldn't "undo six years of economic mismanagement and vandalism in one Budget".
But Luxon confirmed the tax relief package is fully funded.
There is much anticipation for the coalition Government's first official Budget which will be released on May 30.
Watch the full interview above.
