Budget 2020 Live Special: The Government will borrow an extra $50 billion in the June 2021 fiscal year to mitigate the hit from the Covid-19 pandemic.
The Government will borrow an extra $50 billion in the June 2021 fiscal year to mitigate the hit from the Covid-19 pandemic.
The impact of Covid-19 on the Crown's fiscal outlook was "unprecedented" and required a substantial increase to the forecast borrowing programme relative to the forecast at the HalfYear Economic and Fiscal Upbeat 2019," the New Zealand Debt Management Office said.
Treasury bills on issue are forecast to be $10 billion across the forecast period.
Meanwhile, subject to market conditions it expects to launch a new nominal bond via syndication between June 30 and September 30. The maturity will be confirmed before syndication.
A syndicated tap of an existing bond is also expected to take place this time.
Finally, issuance into inflation-indexed bonds is expected to be between $1b and $2 in 2021, subject to market conditions.
The big-ticket items of today's Budget include:
• A $3.2 billion extension of the wage subsidy scheme. • A $1.2 billion railway package. • A $3 billion infrastructure investment package. • A $1.6 billion trades and training scheme. • A $220 million expansion of the school lunches initiative. • A $400 million targeted tourism support fund. • A $830 million disability support package.
