That's according to Treasury's most recent analysis of the Government's long-term finances, a draft of which has been put out for consultation. Currently, the Government spends just 0.6 per cent of GDP on debt servicing each year. Our debt levels would be roughly comparable to those of Greece, whose debt-to-GDP ratio was 177 per cent during the debt crisis of 2015. In 2016, the last time it published its long-term fiscal report, it had net debt hitting 174.1 per cent of GDP. Another option would be to increase tax revenue by not adjusting tax brackets as incomes increased or by adding new taxes like a capital gains tax.

Source: New Zealand Herald July 05, 2021 07:56 UTC