Government abandons fiscal responsibility rule after just 18 months

The Herald reports:

The Government this morning announced that it will shift its debt target from a single figure to a percentage range.
Finance Minister Grant Robertson explained the Government is looking at a range of around 15 to 25 per cent of the GDP.
“Essentially, our current 20 per cent target falls in the middle of the new range that will exist from 2021/22 onwards,” Robertson said in a speech this morning to the Craigs Investment Partners investor conference.
The move potentially gives the Government more scope for spending in its second term – and policy promises in the 2020 campaign.

This would give the Government wriggle room to spend more – potentially up to $15 billion – based on the additional 5 per cent of GDP available to them.

Calling Steven Joyce, Calling Steven Joyce – I think we’ve found your $11 billion hole!