Northern Advocate
  • Northern Advocate home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Sport
  • Property
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport
  • Property
    • All Property
    • Residential property listings

Locations

  • Far North
  • Kaitaia
  • Kaikohe
  • Bay of Islands
  • Whangārei
  • Kaipara
  • Mangawhai
  • Dargaville

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Kaitaia
  • Whangārei
  • Dargaville

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Northern Advocate

Budget 2020: Liam Dann - Grant Robertson gets balancing act bang on

Liam Dann
By Liam Dann
Business Editor at Large·NZ Herald·
14 May, 2020 06:03 AM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Finance Minister Grant Robertson. Photo / Mark Mitchell

Finance Minister Grant Robertson. Photo / Mark Mitchell

COMMENT:

Finance Minister Grant Robertson has nailed the Budget balancing act today.

But that might be the easy bit. In the end, he won't be judged on today's effort.

He has bet big that by spending big he can support the economy through to a quicker recovery.

He'll be judged on the recovery. How well the Government spends the billions available to it will be where it counts. The hard work is still ahead.

Advertisement
Advertise with NZME.

READ MORE:
• Budget 2020: Live - What's in store and what we know so far
• Budget 2020: Government unveils $50 billion Covid response, wage subsidy scheme extended
• Budget 2020: Budget at a glance - the big Covid 19 package and how hard has it hit
• Budget 2020: Devastated tourism gets $400m but details are scarce

The Government has set a bold target to get unemployment - which it sees spiking to 9.8 per cent - back to where we started (at 4.2 per cent) in just two years.

Westpac senior economist Michael Gordon described that as "extremely ambitious".

Advertisement
Advertise with NZME.

But Robertson has allocated the funds to support New Zealanders through the downturn.

And cleverly he has not allocated them all.

This is a big-spending Budget - technically the single-biggest spending package in New Zealand's history.

But since the lockdown of New Zealand's borders in March, it was always going to be.

It takes total Covid-19-related spending to $63 billion, with $20b set aside for the months ahead.

With Government bond issuance of $190b over the next five years and net debt to GDP peaking at more than 53 per cent it is bigger than many economists expected.

"More massive than expected, an extraordinary response to extraordinary times," wrote Westpac's Gordon.

Is it too much?

Advertisement
Advertise with NZME.

The uncertain nature of the ongoing pandemic means Robertson was always going to be vulnerable to criticism that his focus is too long (not enough emergency support) or too short (where's the road map to recovery?).

Already we are hearing a chorus of complaints from both ends of that spectrum.

In the end, National appears to have opted for the former approach, critical of the large amount of unallocated funds.

The Government is walking a tightrope with this Budget. Photo / Getty Images
The Government is walking a tightrope with this Budget. Photo / Getty Images

It's clearly a matter of degree. Allocating all the fiscal firepower now would have been unthinkable.

It's not hard to sympathise with the Opposition's concerns that this gives the Government enormous headroom to tweak policy as required in the run-up to the election.

National can and should fight hard on issues around the quality of the spending.

But it puts them on the back foot.

Whether this Budget makes business happy is a loaded question - likely to be determined by the viability of the businesses and by their access to support.

There is no way around the fact there will be business failures ahead as the wage subsidy focus tightens.

But equally, any business person with a belief in a free-market world will understand that subsidies can't last forever.

It is becoming increasingly clear that Ardern and Robertson are good at listening to the wider business community when it comes to the big picture.

In pre-Budget speeches, they pivoted quickly to talking about job creation and job training.

Whether there is substance behind those words remains to be seen.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from Northern Advocate

Northern Advocate

'He is a danger and he will kill': Methed-up boy racer racks up 14 convictions in 4 years

22 Jun 07:00 PM
Northern Advocate

Northland retirement village residents rally for urgent law changes

22 Jun 05:00 PM
Northern Advocate

Ratepayers to cover cost of felling 230 redwoods in Far North

22 Jun 05:00 PM

How a Timaru mum of three budding chefs stretched her grocery shop

sponsored
Advertisement
Advertise with NZME.

Latest from Northern Advocate

'He is a danger and he will kill': Methed-up boy racer racks up 14 convictions in 4 years

'He is a danger and he will kill': Methed-up boy racer racks up 14 convictions in 4 years

22 Jun 07:00 PM

'At what point do we say enough is enough?'

Northland retirement village residents rally for urgent law changes

Northland retirement village residents rally for urgent law changes

22 Jun 05:00 PM
Ratepayers to cover cost of felling 230 redwoods in Far North

Ratepayers to cover cost of felling 230 redwoods in Far North

22 Jun 05:00 PM
Three bidders confirmed for Northland Expressway PPP

Three bidders confirmed for Northland Expressway PPP

21 Jun 05:00 PM
Anzor’s East Tāmaki hub speeds supply
sponsored

Anzor’s East Tāmaki hub speeds supply

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • The Northern Advocate e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Northern Advocate
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The Northern Advocate
  • The New Zealand Herald
  • The Northland Age
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • © Copyright 2025 NZME Publishing Limited
TOP