A cost of living payment is being promised in Budget 2022 to "cushion the impact of inflation".

Finance Minister Grant Robertson is delivering the annual Budget in parliament today.

He is presenting the Labour Government's fourth Budget.

He says Budget 2022 will help build a high wage, low emissions economy that provides greater economic security, while providing support to households affected by cost of living pressures.

'Our economy has come through the Covid-19 shock better than almost anywhere else in the world. But as the pandemic subsides, other challenges both long-term and more immediate, have come to the fore. This Budget responds to those challenges,” says Prime Minister Jacinda Ardern.

'Covid-19, climate change and the war in Ukraine have taught us we need to build a more secure economy that protects New Zealand households from the external shocks we know are coming.

'We are reopening to the world from July 31. Tourists are already arriving and we are shaking off the remaining impacts of Covid-19. The fundamentals and trajectory of our economy are strong but we have an immediate cost of living crisis to get through.

'The Budget eases the impact of global inflation on families. While we know the current storm will pass, it's important we do what we can to take the hard edges off it now.

'The cost of living package contained in the Budget deals with the here and now by extending reductions to fuel excise duty and road user charges for a further two months, creating a temporary $27 a week payment for New Zealanders earning up to $70,000 a year, who are not already receiving the Winter Energy Payment and extending half price public transport fares.

'These initiatives come on top of the significant lifts to main benefits, student allowances, and family tax credits implemented on April 1 and the Winter Energy Payment from May 1.

'These are practical measures as families come through the hardest period post-Covid-19 and as the world responds to the war in Ukraine.

'Our successful economic management focused on people enables us to make these investments. We have record low unemployment, economic activity that is higher than it was before Covid-19, and Government debt that is lower than most countries we compare ourselves to.

'Budget 2022 makes investments that secure our future. We're making our largest ever investment in the health system and Pharmac because New Zealanders need and deserve first class access to health services and medicines right across the country.

'The landmark Emissions Reduction Plan and first allocations from the Climate Emergency Response Fund will put us on track to meet the goals of our first emissions budget, and ensure New Zealand is on course to build a low emissions economy that provides greater economic security for everyone.

'We're investing now to make sure we're ready and secure for what lies ahead. Be it the impact of climate change or growing pressure on health services, now is not the time to take our eye off the ball.”

'Wellbeing Budget 2022 – A Secure Future charts the course for economic security and a high wage, low emissions economy as the world emerges from the Covid-19 pandemic,” says Grant Robertson.

'We can do this because our economy has come through Covid-19 better than nearly any other country in the world, as a result of our strong public health and economic management.

'Our successful Covid-19 response provides a launch-pad for growing our economy, creating new high-wage jobs with our response to climate change and improving health outcomes for New Zealanders. All while keeping debt low and a forecast return to surplus with balanced spending decisions.

'Our economy is one of the strongest in the world with triple-A credit ratings, record-low unemployment, lower debt than Australia, the US, UK and Canada and good growth.

'We continue to carefully manage the books. Our careful fiscal management means we return to surplus quicker than National did after the GFC and creates the room to increase infrastructure investment to future-proof the economy.

'Budget 2022 shows the economy is expected to be robust in the near term. It is expected to strengthen from the second half of this year, with annual growth peaking at 4.2 percent in the year to June 2023.

'New Zealand's economic security depends not only on addressing the near term challenges of the cost of living, supply chain disruptions and skill shortages, but also on a clear and deliberate transition to a high-wage, low-emissions economy.

'One Budget cannot solve all of New Zealand's challenges in one year, a longer-term approach is smarter, logical and provides more certainty. Which is why we are making long term investments in health, climate and infrastructure

'The last few years have been challenging for everyone, and some of those challenges are still with us. This Budget strikes a careful balance, building on our successful response to Covid-19 in continuing to support New Zealanders through a tough period, but also looking forward to supporting New Zealanders to seize the opportunities of a more secure future,” says Robertson.

Labour taking New Zealand backwards, says National.

Budget 2022 confirms that New Zealand is going backwards under Labour faster than ever, Opposition Leader Christopher Luxon says.

'This is the Backwards Budget. Kiwis, the economy and outcomes are all going backwards under Labour and today's forecasts confirm the situation is only going to get worse before it gets better.

National Party Leader Christopher Luxon.

'Labour's spending addiction means the books are going backward. Not content with a $6 billion spending spree, they've also raided future budgets – spending $2 billion from Budget 2023 and $0.4 billion from Budget 2024. And that's before you count climate spending and the cost of living bandaid – which are on top.

They're pushing out surpluses and shifting the goal posts to clear the way for more spending by lifting debt limits.

'With inflation at a 30-year-high and prices running laps around wages, Kiwis are experiencing the worst cost of living crisis in a generation. The forecasts today show inflation is rampant for years to come.

'More and more Kiwis are falling behind each week, squeezed by growing costs and a Government that refuses to offer them meaningful income tax relief while ramming through the biggest spend-up in New Zealand history.

'Labour's cost of living package is a temporary band aid. The squeezed middle are paying the price for Labour's economic mismanagement.

'And despite smashing the record for government spending, outcomes are going backwards. They've added more than 10,000 bureaucrats to the public service, yet outcomes are getting worse.

'Under Labour, wait times for surgery and specialist assessments have blown out, literacy and numeracy achievement rates have hit alarming lows and violent crime and gang numbers have exploded.

'New Zealand is going backwards, fast. We simply cannot afford this Labour Government.”

ACT calls Budget 2022 "The brain drain budget"

'Jacinda Ardern and the Labour Government have today presented New Zealand with the Brain Drain Budget. Ambitious New Zealanders, tired of being milked, will weigh up leaving for greener pastures,” says ACT Leader David Seymour.

'Last December Treasury forecast a population of 5.188 million in the next financial year, six months later it forecasts only 5.175 million people. Even Treasury is forecasting a brain drain expecting New Zealand's population to be smaller today than it expected six months ago.

ACT Party Leader David Seymour.

'Those who rely on working to pay rising bills needed hope, but it's not in this budget. Why should people stay here to be milked harder? Why be milked for Labour's ideological projects and wasteful mismanagement?

'John Key said working for Families was Communism by Stealth, now they've broken cover. Labour's big answer is to put more people into state dependency, giving those earning under $70,000 just under $30 a week which will only add to inflation.

'Meanwhile if you earn over $70,000 you're left to swim against the tide of inflation.

'Under Labour, the gap between the median wage in New Zealand and Australia has grown $6,600. People will put up with a lot if there's a strategy to make it better, but there's no strategy in this budget.

'The Budget needed to do three things. 1) Reel in spending to kill inflation dead. 2) Reduce taxes so hardworking families can deal with the price rises they face already, and 3) make strategic investments for housing supply, defence, and education.

'Sadly, the spending binge carries on. Taxes will now be $21,945 per person per year, up $6,120 from $15,825 per year when Labour came to office. Taxpayers are being milked harder, and we have no strategy for the future. It is not a good advertisement for skills and investment to come to or stay in New Zealand.

'ACT's Alternative Budget for Real Change showed how spending could be reduced by $6.8 billion a year without touching health, education, or any frontline service. Instead, we will see an increase in wasteful and inflationary spending.

'ACT's Alternative Budget for Real Change showed how a nurse on $70,000 would be $2,309 better off. Instead, someone like that will see no difference except ongoing inflation.

'High Government spending will hurt New Zealanders in another way. If the Government doesn't sort inflation, the Reserve Bank will sort it for them. If the Government keeps spending, the Reserve Bank will dampen inflation by raising mortgage rates.

'In case anyone thinks renters are safe from mortgage rate increases, they just have to ask themselves, who will pay a landlords' mortgage, if not the tenants? Government blow outs will mean higher interest rates, which mean rent increases. The money supply has to be dampened one way or another, and the Reserve Bank's way will hurt everyone.

'The budget needed to put in place a clear plan to raise productivity. They have not done any such thing. Labour throws money around in ways that are not effective or efficient. That's why we're seeing countries such as the Czech Republic, Lithuania, and Slovenia becoming richer than us.

'ACT's Alternative Budget for real change would simplify the tax system from six different tax rates down to two. Simpler taxes don't just mean less bureaucracy, they send a message that we are committed to a future where we won't fleece you for every extra effort. It's about exorcising tall poppy syndrome from the New Zealand psyche.

'Instead, Labour has delivered a Brain Drain Budget. Tax the productive to fund Labour's ideological fantasies, then just hope they don't leave. Unfortunately, more and more will.”