20 May 2021

Budget 2021

The Budget at a Glance is a high level summary of key initiatives funded in the Wellbeing Budget 2021, along with an overview of the Government’s wellbeing approach and the fiscal and economic outlooks as presented in the Budget Economic and Fiscal Update.

The Budget Headlines

WELLBEING BUDGET 2021: KEY HIGHLIGHTS

  • Lifting weekly main benefit rates by between $32 and $55 per adult to tackle inequality and child poverty, as well as reinstating the Training Incentive Allowance
  • $300 million to recapitalise New Zealand Green Investment Finance to continue to invest in support of climate change mitigation, with a particular focus on decarbonising public transport, waste and plastics
  • Infrastructure investment totals $57.3 billion over the next five years, and to increase housing supply we are investing $3.8 billion in a Housing Acceleration Fund
  • Just under $1.5 billion allocated for the COVID-19 Vaccine and Immunisation Programme, which provides fully funded, free COVID-19 vaccines
  • Investing $4.7 billion in Health, which includes more funding for PHARMAC, plus the transition to a new health system and establishment of a Māori Health Authority

COVID-19 RESPONSE AND RECOVERY FUND

  • To support our ongoing rebuild from COVID-19, we have funded the $3.8 billion Housing Acceleration Fund from the CRRF. Just as we have stamped out community spread and supported businesses and workers, it is important that we continue to deliver on key initiatives that support New Zealand’s economic recovery, rebuild and long-term wellbeing.
  • $5.1 billion remains in the CRRF as a contingency to respond to further outbreaks, should they occur, and to continue our economic rebuild.

ACCELERATING OUR RECOVERY AND REBUILD

  • Driving economic recovery through investment in business, infrastructure, and tourism support. Ongoing Investment in Infrastructure Our Crown infrastructure investment over the next four years now totals $57.3 billion. Infrastructure is at the core of our economic recovery plan. As we began this term, we already had a record $42 billion of infrastructure investment in progress over the next four years in roads and rail, schools and hospitals, housing and energy generation – Budget 2021 adds considerably to this investment. $57.3b capital
     
  • Future of Rail Initiatives Provides funding for three Future of Rail initiatives that support the procurement of 60 new locomotives and 1,900 new wagons, provide a top-up to the National Land Transport Fund to help restore a resilient and reliable rail network, and provide working capital for KiwiRail to ensure the maintenance of core freight, tourism, property and ICT assets. $1.3b operating and capital
     
  • Tourism Communities: Support, Recovery and Re-set Plan Funded from the COVID-19 Response and Recovery Fund, our $200 million Tourism Communities: Support, Recovery and Re-set Plan provides support for those communities that are most reliant on international tourism, as well as for the tourism sector nationwide, to enable the reset of tourism in response to COVID-19 to be more sustainable and resilient. $200m operating and capital
     
  • Small Business Digital Training, Advisory and Support Programme This funding will enable a partnership with the private sector to deliver a two-year nationwide programme to supply core digital business skills training to New Zealand small businesses. $44m operating.

For further information on the budget click here.

Source – Economic Development NZ – 20 May 2021