Budget 2018 doesn't go far enough; Govt should drop rules - Bernard Hickey

The 2018 Budget has finally been released by the new Labour-led Government, but some believe it hasn't gone far enough in its spending.

Newsroom Pro Managing Editor Bernard Hickey told the Newshub Nation Budget Special the Government had been constrained by its Budget Responsibility Rules.

"They've definitely hit their responsibility target, so they've said 'we're [going to] run a surplus over the cycle' and there's a big surplus nearly $4 billion in the next year," he said.

"They've also gone below the 20 percent debt target that they talked about before the election - it's actually only 19 percent in that key fifth year of the Government.

"So they have hit their targets for budget responsibility; there's still, though, a debate about whether they really need to, because the bond markets don't give a toss about the 20 percent debt target."

Watch the video to see Bernard Hickey speak on the Newshub Nation budget special.