Families with children are expected to be the main benefactors of the Government’s new mini-budget.
The Labour-led Government released its Budget Policy Statement today.
Finance Minister Grant Robertson says the agenda aims to build a sustainable and productive economy that shares the benefits of prosperity with all New Zealanders.
“We will fix New Zealand’s social and infrastructure deficits by investing in families, education, health, housing and our regions."
Grant says the BPS and the Treasury’s Half Year Economic and Fiscal Update show the Government can deliver on its promises, while running sustainable surpluses and paying down debt.
“We can meet all of our commitments within our Budget Responsibility Rules. These commitments include our 100-Day Plan; Labour’s other policies in the pre-election Fiscal Plan; the Coalition Agreement between Labour and New Zealand First; and the Confidence and Supply Agreement between Labour and the Green Party.
“The Treasury’s Half Year Update incorporates the costs of our 100-Day Plan. The BPS indicates how policies outside this will be afforded within the capital and operating expenditures allowed in future Budgets. Over the next four years, allowances for policies outside of the 100-Day Plan provide $21.7 billion in new operating expenditure, and capital allowances provide for $12.6 billion of new investments.
“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021."
WHAT YOU NEED TO KNOW
• The new Government’s mini-budget will deliver serious financial gains to families with children, particularly poorer ones.
• The Government estimates the poorest 385,000 families with children will receive an extra $75 per week, from its families package.
• A further 365,000 can expect an extra $39 a week and another 650,000 families will gain about $14 a week extra to their wallets.
• About 1m people - including all superannuitants - will be eligible for a "Winter Energy Payment" of up to $450 a year, cash in hand.
• Families with new babies will receive $60 a week for the first year of the child’s life, and for a futher two years if they are on modest or low incomes.
• The entire family package will cost $5.53b over the next five years. This amount is more than made up for by cancelling the planned tax cuts.
• The three-way Government is planning $21.7b of new expenditure over the next four years.
• That includes a $2b capital injection for the KiwiBuild Programme, intended to build 100,000 houses over 10 years.
• The economic outlook until 2022 is fairly rosy with growth estimated to stay the same with unemployment falling to four per cent.