28081 (2024). Hon Barbara Edmonds to the Minister of Finance

28081 (2024). Hon Barbara Edmonds to the Minister of Finance: If debt is to increase due to Budget 2024, will this see inflation increase?

Hon Nicola Willis: No. Debt is forecast to be higher than at the Half Year Economic and Fiscal Update 2023 (Half Year Update), owing to larger deficits which reflect a weaker economic and tax outlook. However, the Treasury’s latest forecasts in the Budget Economic and Fiscal Update 2024 (Budget Update) show inflation falling faster than expected at the Half Year Update. Furthermore, the Budget Update states that decisions taken through Budget 2024 will on balance reduce the contribution fiscal policy is making to inflation pressure.