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2021 Budget focuses on economic recovery

Grant Robertson. File photo.

Budget 2021 will sharpen the focus on supporting the New Zealand economic recovery, says Finance Minister Grant Robertson.

Speaking at a BNZ Breakfast event in Wellington this morning, Robertson released the 2021 Budget Policy Statement saying the May Budget provides a chance to take stock of how New Zealand and New Zealanders have come through COVID-19.

“The recovery is the result of the hard work and sacrifice that New Zealanders collectively put in across 2020. We now have an opportunity, through our better than expected recovery and fiscal position, to address some of our long-standing challenges.

“At Budget 2021, I will continue my focus on making sure spending is targeted at the areas and people that need it the most. We will manage the books carefully including, ensuring we are getting value for money in all areas of Government spending and reprioritising spending where appropriate.

“We will also continue the balanced approach to invest in strong public services and addressing issues like housing, while keeping a lid on debt."

Roberton says new numbers released today using Treasury’s Fiscal Strategy model show a better than expected recovery means net debt is now forecast to reduce to 36.5 per cent of GDP by 2034/35.

"While these are only projections, they show the progress that we are making.

“New Zealanders trusted us to keep them safe last year, and we will continue to make the tough decisions required to do that, while also keeping the economy moving in the right direction."

The Budget allowances for 2021 are unchanged from those announced in December, though they are subject to change depending on economic conditions.

Budget 2021 will focus on the Government’s overarching objectives for this Parliamentary term which are: continuing to keep New Zealand safe from COVID-19, accelerating the recovery and rebuild and addressing key issues like climate change, housing affordability and child poverty.

Specific Budget 2021 investments will fall under four high-level priorities: continuing the COVID-19 response, delivering priority and time-sensitive manifesto commitments, supporting core public services through managing critical cost pressures and continuing to deliver on existing investments.

These are underpinned by the Wellbeing Objectives, which are now a requirement under changes made to the Public Finance Act.

These objectives continue the evidence based focus started in the Wellbeing Budget. The 2021 Wellbeing Objectives are:

  •   •  Just Transition to a Low Carbon Economy

  •   •  Future of Work: Lifting Productivity and Innovation

  •   •  Lifting Maori and Pacific Incomes and Opportunities

  •   •  Reducing Child Poverty and Improving Child Wellbeing

  •   •  Improved Mental and Physical Health Outcomes

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4 Comments
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Johnney

Posted on 09-02-2021 13:26 | By

Any idiot can run out a string of buzz words and nice to imagine policy statements, but if there isn’t the talent to get any ACTION, then that’s all you’re going to get... Idiotic platitudes and ridiculous statements that can and never will be honoured. But keep promoting the Watermelon credo.

Tom Ranger

Posted on 09-02-2021 12:06 | By

I will summarize with historically sound assumptions... More taxation and manipulation of certain markets to benefit their buddies in particular businesses coming our way.

Answers below

Posted on 09-02-2021 11:19 | By Johnney

Just Transition to a Low Carbon Economy Higher taxes and registration costs for big gas guzzling 4 wheel drives. Future of Work: Lifting Productivity and Innovation Don’t give out an extra holiday and 4 weeks holiday Lifting Maori and Pacific Incomes and Opportunities No shortage of jobs around Reducing Child Poverty and Improving Child Wellbeing Parents making better choices Improved Mental and Physical Health Outcomes Need more staff and resources

Hmmm

Posted on 09-02-2021 09:23 | By

Give it a day or two for the real number crunchers to pick it to pieces and then let’s see how much spin is being used against us to cover up ineptitude. When this government comes out from behind the covid shield that they’ve been using to deflect criticism, we’ll see once again why it’s important to employ the best person for the job rather than someone who ticks the most diversity boxes. Sacking Mallard would gain a lot of public approval to begin the year... Just saying.