Labour’s recently released tax and borrow plan will leave New Zealand in a huge fiscal mess.

At a time when an increasing number of large countries have severe problems caused by too much debt, Labour’s recipe for New Zealand is to borrow more every year on volatile world financial markets.

Labour’s tax increases would raise around $21 billion of extra revenue to 2024/25.

Over the same period, they forgo $28.5 billion in revenue.

That leaves a $7.5 billion revenue hole, on top of another $7.5 billion in extra interest costs to pay on the higher debt. In addition, Labour would need to borrow billions more by not proceeding with the mixed ownership model for SOEs, pushing total Crown debt $18.5 billion higher by 2024/25.

National’s plan is to balance the books, not borrow more money.