Bill English, the Finance Minister has said that he is totally taken aback at the change in the spending habits of the people of New Zealand. The people have clamped down their spending habits and have moved over to saving their money.

In an interview given to TVNZ's Q+A programme , English said that there is going to be more spending from the people because the pre-GST increase has not happened till now.

Once that happens then the short-term pain will be faced since the people would have to pay off their debts. But as soon as that phase passes away then they will come back to their spending spree.

English also added that New Zealand was overhanging with debt. The tightening of GST is going to be applicable in October.

The businesses are increasing their prices since they are not sure about the new GST and risk taking appetite in the markets are low.

GST increase is important since it shows how better-off people are going to be in the long-term. It is needed for better strengthening and working of the economy.