A Labour government would spend about $17 billion in its first term by investing $8 billion more in health than was proposed in Budget 2017, $4 billion more on education than proposed and $5 billion lifting the incomes of middle-income families and those in need.
The policy was released by leader Andrew Little and finance spokesman Grant Robertson and attracted the expected criticism from Finance Minister and National Party campaign manager Steven Joyce and Act New Zealand leader David Seymour.
The figures accompanying the release of the policy showed Labour would achieve a lower operating balance excluding gains and losses (obegal) than the one proposed by the Government in the Budget.
The Government was forecasting an obegal of $8.8 billion by 2021-22 and Labour was forecasting $7.4 billion.
Net core Crown debt was forecast to be more than $7 billion higher at $67.9 billion under a Labour administration than projected by the Government in the Budget.
Mr Robertson said to give future generations more options, reducing government debt had to be a priority.
By setting a target, provided economic conditions allowed, Labour would be able to make responsible debt reductions and invest in housing and infrastructure.
Labour's fiscal planned projected that by running continued surpluses and not undertaking ''irresponsible'' tax cuts, net core Crown debt would be 20% of GDP in 2021-22, five years after this year's election.
National was projecting debt to be 18% of GDP in the same period.
Mr Little said Labour's priorities differed from National's.
''We are committed to rejecting National's election-year tax cuts that will hand $400 million to the top 10% of income earners. We can continue to run surpluses and pay down debt because, unlike National, we do not believe a tax cut can be justified at this time.''
Labour's plan had priorities of new investment in housing, health, education and infrastructure, he said.
Mr Joyce said Labour seemed to be spending more and getting less.
''They are actually proposing to spend less new money on health next year than the Government has added this year. After all their complaints about health spending, that's surprising.''
It was a ''classic'' Labour tax-and-spend approach but it was the wrong time to be building up debt, he said.
