[UNCLASSIFIED]

Kia ora Adam

 

Thank you for your request under the Official Information Act 1982 which
was received on 16 January 2025 seeking:-

 

any advice provided by the Treasury to the Minister of Finance regarding
the economic implications of recent or planned budget cuts, with
particular focus on the following:

 

1. Impact on Aggregate Demand: How budget cuts may influence overall
demand within the economy.

2. Potential Downward Spirals in GDP: Any analysis or projections related
to the risk of negative GDP growth due to such cuts.

3. Shocks to Consumer and Business Confidence: The expected effects of
these cuts on consumer spending and business investment.

4. Historical and Current Macroeconomic Data: Relevant data and trends
from the past and present to support these analyses.

5. International Studies on Austerity: Any international studies or
evidence that the Treasury has used to assess the economic impacts of
austerity measures, including relevant comparisons with New Zealand's
situation.

6. Advice on Spending Cuts During a Private Sector Recession: Whether the
Treasury has provided advice on the impacts of implementing spending cuts
while the private sector is in recession, particularly regarding potential
effects on unemployment levels.

 

Additionally, I would like to know whether the Treasury continues to
provide free and frank advice to the Minister of Finance, as required by
its role, or if such advice has been influenced or constrained by
ministerial preferences or other political considerations.

 

A response will be provided in accordance with the Act (please see the
Office of the Ombudsman Website for more details –
http://www.ombudsman.parliament.nz/).

 

The Treasury may publish the response to your Official Information Act
(OIA) request. When you are provided with a response to this request, you
will be informed about whether the response to your OIA request will be
published. If the Treasury does publish the response to your OIA request,
personal information, including your name and contact details, will be
removed. This publication process does not apply to extension letters or
transfers.

 

Regards

 

 

Te Tai Ôhanga – The Treasury

Visit us online at [1]https://treasury.govt.nz/ and follow us on
[2]Twitter, [3]LinkedIn and [4]Instagram

 

Link: [5]File-List
Link: [6]Edit-Time-Data
Link: [7]themeData
Link: [8]colorSchemeMapping

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