The Fiscal Responsibility Act 1994: The astonishing success of a weak non-binding policy

Abstract

This paper discusses how New Zealand already has a highly independent fiscal institution in the Treasury. A more limited case can be made for an institution to support the opposition in costing policy proposals as occurs in Australia with the Parliamentary Budget Office. The unexpected success of the FRA highlights how difficult it will be to create the conditions for another independent budget office to succeed in New Zealand.