Giuliani Slams Mamdani’s Budget Plan as “Pretty Close to Insane”

Former New York City Mayor Rudy Giuliani on Thursday sharply criticized Mayor Zohran Mamdani’s handling of the city budget, accusing him of misrepresenting the size of the deficit and lacking the experience to manage municipal finances.

Giuliani stated that Mamdani initially overstated the city’s projected shortfall by billions of dollars in order to justify proposed tax increases.

According to Giuliani, the mayor cited a deficit of roughly $7 billion to $9 billion while ignoring incoming tax revenue, including what he described as an additional $5 billion tied to a strong year on Wall Street.

“Wall Street determines about 40 to 50% of the budget,” Giuliani said, arguing that city revenue projections cannot be finalized without accounting for financial sector performance.

“As any mayor who is educated and experienced would have known, you can’t decide what New York City is going to get the revenues until you know what Wall Street’s going to do,” he added.

“So it’s either his gross ignorance or his being a liar that produced that. But what I did was I lowered taxes more than any mayor in history.”

Giuliani contended that either “gross ignorance” or dishonesty led to what he characterized as an inflated deficit estimate.

Mamdani has proposed a 2% tax increase on high-income earners as part of his broader budget plan, which he says is necessary to stabilize city finances and fund key services.

Giuliani dismissed the proposal as “pretty close to insane,” warning that higher taxes would drive wealthy residents out of New York.

“He’s not going to have any rich people left,” Giuliani said. “I don’t know who he’s going to impose it on—they’re all leaving.”

The former mayor also pointed to his own tenure at City Hall from 1994 to 2001, during which he claimed he reduced taxes more than any other mayor in city history.

Giuliani stated that after facing what he described as a larger deficit than the current administration, his policies led to budget surpluses within several years. He noted that New York City had not recorded a surplus in decades prior to his administration.

By the time he left office, Giuliani said the city’s financial position helped it weather the economic shock following the Sept. 11, 2001 terrorist attacks. While officials initially feared a prolonged downturn, he claimed the city’s economy rebounded within two months.

City Hall has defended Mamdani’s budget projections and tax proposals as responsible and necessary, citing long-term fiscal pressures and equity concerns.