5 Nov 2008

Mini budget wouldn't be slash and burn - Cullen

11:47 am on 5 November 2008

Labour says a post-election mini budget would not be a "slash and burn exercise", despite Government financial statements showing a bigger than expected operating deficit.

The Government's financial statements show a $757 million operating deficit, down from a predicted $943m surplus for the three months to September.

Labour's finance spokesperson Michael Cullen told Morning Report it is important to keep the economy going, despite significant cash deficits expected over the next few years.

"We've been going through the most profound financial crisis for 70-odd years. So far the real economy has held up pretty well under that circumstance but we have to expect some flow-on effects."

Dr Cullen says Labour's plan to bring forward investment and construction activities would inject confidence into the economy.