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Summary
- Finance Minister, Grant Robertson delivers a pre-budget speech at Wellington, confirming the country’s economic recovery was faster than expected.
- Funds would be utilised for reducing the Government's debt taken during the coronavirus pandemic to assist the country and its citizens.
- New Implementation Unit to be set up to monitor new initiatives and spending.
Tuesday morning, New Zealand was greeted by Hon Grant Robertson, Minister of Finance, when he delivered his annual pre-budget speech to the audience at the Wellington Chamber of Commerce.
Robertson stated that all the funds allocated for meeting COVID-19-related expenses hadn’t been utilised.
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Savings To Be Re-utilised For COVID-19 Response and Recovery Fund
While preparing the budget, Robertson had advised his ministers to check whether the funds allocated to them for COVID-19-related spending had been utilised or if any amount left could be re-used and reprioritised.
A careful review on the same resulted in savings worth $926 million. This amount would be reutilised to help the country’s COVID-19 recovery and would be put aside for areas that require them the most.
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Need Of The Hour: Budget 2021 To Be The Recovery Budget
The Minister of Finance reiterated that Budget 2021 would be the country’s recovery budget. As almost the entire world is witnessing the devastating impact of the pandemic, New Zealand has performed well and has been successful in containing and controlling the virus.
A prudent and cautious balance needs to be maintained while investing money for the recovery of New Zealand’s economy, as well as lowering the debt that was taken to aid the country and its citizens during the pandemic.
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The Government is focused and has set aside key areas for which it has been constantly working:
- Keeping its citizens safe from COVID-19;
- Accelerating the pace of the country’s economic recovery; and
- Laying emphasis on affordable housing, child well-being, and climate change.
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New Implementation Unit
Grant Robertson has also been given an additional responsibility to take up the new role of the country’s Deputy Prime Minister and handle a new implementation unit.
The said unit would keep a close watch as well as support the various crucial initiatives of the government.
Robertson further emphasised that Government was making every effort to support the country’s recovery by introducing various public service initiatives. At the same time, it is judiciously planning and investing for the country’s bright future.
Is There A Silver Lining For New Zealand’s Economy?
The Kiwi economic debt is likely to slash from the middle of the decade as it recovers from the effect of the pandemic. Robertson further added that interest rates were also lower than before along with the debt servicing costs throughout the predicted duration at less than 1% of the GDP.
Also, there has been 4.9% decrease in unemployment level as compared to the previous quarter. With the vaccinations being rolled out in New Zealand and the start of travel bubble between Australia and New Zealand and few countries like Cook Islands, the economy is anticipated to rebound.
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Opposition Criticise Setting Up Of A New Implementation Unit
New Zealand PM Jacinda Ardern’s call for setting up a new implementation unit has been criticised by the opposition party. It is of the view that the task of managing the Government's spending is already entrusted with the various Government agencies and ministries.
National leader Judith Collins opined that setting up a new unit for overseeing and ensuring the success of the state’s spending was not justified and called for a ‘vote of no confidence’.
However, Ardern reaffirmed that a new unit was essential to monitor the huge spending of the previous year’s budget as well as to oversee the new spending of the current year.
