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Summary
- Budget 2021 has been termed as a COVID-19 recovery budget
- keeping country safe and health the main plans of Budget
- Have a look at the various provisions made by the government to achieve the same.
The much-anticipated Budget for 2021 is out and Hon Grant Robertson the minister of finance has officially called this budget the “Wellbeing Budget”. This is for the simple reason that this budget focusses on activities that will help the country heal, literally; from the effects of the pandemic, the climate deterioration being faced, the economic disparity being faced and everything in between.
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Several provisions in the budget have been announced for pandemic related relief in order to provide respite to the areas that have had to face the worse of it. There is no denying the fact that hospitality and tourism have had to see the most damage in terms of business in the past year, closely followed by retail and production.
Robust government planning
While the government has shown robust support in the matter in the past year, due to which several lives and livelihoods could be saved, there is still a lot of work to be done for which this budget grants measures.
The unemployment rate which has been curbed to a major extent with the help of the wage subsidy scheme is expected to continue till things stabilize further.
The capital allowance of the government has increased by 50% which will mean efficient recovery from the pandemic with the help of job creation and helping people get adequate livelihoods to keep afloat.
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Areas that will receive most benefit.
The housing sector which was already being funded by the government so that first time home buyers could buy places in the COVID-hit market which has caused the prices to go skyrocketing.
The government is of the view that investment in infrastructure is pivotal to their current plan for economic recovery. Both on regional and national levels, they plan to help in the promotion of new jobs and eventual economic recovery and growth.
The Multi-year capital allowance has also witnessed a surge in the current budget announcement from NZ$8b to NZ$12b. The different sectors that will receive benefit from this are health construction, railway, and finance besides others.
Also read: 10 Takeaways From The New Zealand Budget 2021
Outlook
In terms of forecast, the Government believes that the economy shall witness a surge in the second half of the year by 4.4% by 2023. It was further said that unemployment will witness a further plunge to 4.2% by the end of the forecast period.
