Budget 2021: What is it and what to know before the announcement

Finance Minister Grant Robertson will deliver Budget 2021 on Thursday. Photo / NZME

OPINION

It's budget time. It's the time of year when the Government seems to be spending more money than we can comprehend in ways many members of the public don't quite understand.

So what is the Budget and why should we care in little ol' Bay of Plenty?

According to Labour itself, the Budget is "when all of the Government's investments for the next year get planned out – and it's also when the Government explains why its Budget is the way it is".

It means Kiwis know what taxpayer money is being used for and lays out the Government's priorities and financial situation.

And it is all happening today.

As boring as it sounds everyone in New Zealand will be affected by the Budget. Whether you're a small business owner, access health services or even drive on our state highways, the Budget affects you.

Last year the Government's Budget 2020 was worth $50 billion.

This year Finance Minister Grant Robertson said the Budget would be a Covid Budget but also a recovery and wellbeing Budget.

Robertson has already indicated the Government's five Budget priorities are; a just transition to a low-emissions economy, lifting productivity and the future of work; lifting Māori and Pacific incomes, skills and opportunities; reducing child poverty, and supporting the physical and mental wellbeing of New Zealanders.

Already the Government has been throwing money around like it is going out of fashion.

It's announced a $170 million pre-Budget boost to help bring early learning teachers' pay in line with their kindergarten counterparts.

It's announced the 20 district health boards will be replaced by one new body, Health NZ, for the whole country and the establishment of a Māori Health Authority as well as $53m to develop and roll out a new HPV self-testing kit.

Climate Change Minister James Shaw has also already announced $67.4m over four years to support the Government's promise for a carbon-neutral public sector by 2025.

Then there was the $55m upgrade of the Government's aged IT systems which would mean almost 300,000 extra women will be eligible for potentially life-saving free breast scans.

What are we at? $345.4m already.

Then there's the new financial assistance package to help Māori get into homeownership which Housing Minister Megan Woods has also hinted at.

We are talking huge sums of money and massive investment in a broad range of things.

The effects of almost every one of these budget announcements trickle back to us in the Bay of Plenty so it's time to pay attention to the Budget and how it will change day-to-day life for you.

Because there is no doubt it will.