Budgeting during a cost-of-living crisis

In today's Focus on Politics podcast, Political Editor Jane Patterson sits down with the Finance Minister Grant Robertson and National's Nicola Willis to preview this month's Budget."We've got to get through this 2022 that's difficult, but we also know that we want a health system that's operating really well in '23 and '24 too," - Grant RobertsonIt's Budget time again, but 2022 brings a number of major economic challenges.These include massive costs pressures affecting households, business and government; ongoing supply chain shocks and disruption made worse by the ongoing war in Ukraine; housing unaffordability through the roof; expectations around climate change, poverty and inequality and funding large reforms like health.National's finance spokesperson Nicola Willis says the biggest challenge for Finance Minister Grant Robertson is the cost of living crisis.RNZ Political Editor Jane Patterson sat down for a chat with Willis and Robertson, ahead of this Labour government's fifth Budget. Listen to the full podcast hereWillis says the cost of living is affecting every New Zealander, and inflation is a robber at our doors. She says she would expect direct income support for households, but with more tax being collected by the government than before, and argues the government has a track record of wasteful spending. "The presumption there would have to be that he thinks he can spend New Zealanders money better than they can, and I just disagree with that premise. "Examples like $51 million being spent on consultants for an $800 million cycling bridge that hasn't gone ahead talk to a culture and government that's not great, but it's also about spending that hasn't been well enough planned and targeted on results." She says National's proposal for cutting taxes - including the 39 percent top tax bracket for earnings above $180,000 - strikes a fair balance."Grant Robertson this year is collecting around $14 billion more in income tax than when he came to office, our package would cost $1.7 billion ... that would mean the average household would benefit to the tune of $1600 a year. We think that's meaningful."Read more:Despite re-set, Labour still struggling to overcome its tax criticsWatch: Finance Minister Grant Robertson give pre-budget speechOpinion: Why the young need an even higher debt ceiling$86m Budget boost to help people get a driver's licenceAuckland residents support proposed $1b climate rate, council saysSchool truancy: 'No magic wand' when tens of thousands miss classes…Go to this episode on rnz.co.nz for more details