A specific new spending target and an independent fiscal institution could be set up to help deal with both of these weaknesses. The OECD said these rules had not prevented “spending slippage”. The following year, a $1.4 billion increase to the operating allowance was not explained at all. An independent fiscal institution (IFI), also known as a policy costing unit, could reduce the risk of fiscal sustainability being thrown off track by large errors. Willis said she was actively considering creating some sort of independent fiscal institution.

Source: New Zealand Herald May 06, 2024 23:30 UTC