Labour has cut spending on Health and Education

The PREFU Forecasts from The Treasury offer an opportunity to see what the government has actually done and intend to do and check their propaganda against facts and Treasury independent forecasts based on Labour policy.

As we can see from the table below Labour have actually cut expenditure on health and education relative to GDP.  They intend to do nothing about it based on their latest forecasts.  If you take out the low quality expenditure on uncertified tertiary providers it looks even worse.  They can certainly take no credit for the growth in GDP and the extra tax take has been wasted.

Health expenditure has dropped from 6.4% of GDP under National to only 5.5% under Labour.  With increased salaries it is no wonder there are fewer operations.

	1999 June	2005	2008
	Actuals	Forecast	Forecast
Gross Domestic Product	102,465	156,481	177,697
Education	5,899	8,754	9,946
Health	6,573	8,550	9,893
Education as % of GDP	5.8%	5.6%	5.6%
Health as % of GDP	6.4%	5.5%	5.6%

Source: GDP:	http://www2.stats.govt.nz/domino/external/pasfull/pasfull.nsf/0/4c2567ef00247c6acc256f180021f5a3/$FILE/alltabls.xls
Expenditure	http://www.treasury.govt.nz/forecasts/prefu/2005/3finperf.asp

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