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Summary
- Grant Robertson will unveil NZ’s budget at 2pm on Thursday.
- Robertson had indicated that this year budget would be a recovery and well-being budget.
- An increase in benefits including funding for child poverty prevention scheme and Maori housing are expected.
Finance Minister Grant Robertson is all set to reveal his fourth budget at 2pm on Thursday. The big day will unveil how the New Zealand government is planning to spend Kiwis’ money for the upcoming financial year.
This year’s budget is widely expected to provide more money to the poorest and those who have been the hardest hit by the COVID-19 pandemic.
The Budget will not only unveil the major spending plans of the government but also all significant economic predictions from the Treasury as well. This will include the government's anticipations for unemployment, economic growth, as well as debt and the projected level of deficit.
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Robertson had argued in the pre-budget speech given earlier this month that the government would not be implementing austerity measures and all assurances cannot be fulfilled in one budget. He declared that it would be more of a well-being and recovery budget, which would help in combating with the impact of the pandemic.
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Here is a list of announcements that have been made so far:
- $118.6 million has been committed to women’s health, which includes creation and implementation of a new test to detect cervical cancer and IT upgrades.
- Early childhood education (ECE) teachers will receive $170 million over 4 years to achieve pay parity with kindergarten counterparts.
- Investment of $67.4 million to permit public sector to transform and become carbon neutral by 2025.
- $1.4 billion allocation for NZ’s COVID-19 vaccination programme to ensure free vaccine for every Kiwi.
Funding for child poverty prevention scheme and Maori housing expected
Since the healthcare sector has been missing from the Government's pre-budget statements, there is a serious concern that a boost in benefits could be on the table.
While Labour is dedicated to confronting income adequacy in the welfare system, Social Development Minister Carmel Sepuloni told the House on Wednesday that Prime Minister Jacinda Ardern had regularly asserted that much was needed to be done to combat child poverty.
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Ardern made no claims after announcing child poverty figures last week, leading to expectations that a declaration would be made in the Budget.
The government is also expected to declare a significant Maori housing package. However, not much is expected for housing after the government unveiled multi-billion dollar package in March.
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Further, the NZ government is also facing the burden of higher debt, which is expected to peak at 52.6% of GDP in 2023. Robertson stated that the budget would have to be balanced both in terms of keeping a lid on the debt and also what investments must be made ahead.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
