* A deficit of $7.7 billion expected this year, peaking at $9.3 billion in 2010/11. Finance Minister Bill English says deficits could persist for 10 years.
* Government gross debt is expected to peak at 43 per cent of GDP in 2016/17 before falling to 37 per cent in 2022/23,
against forecasts of 70 per cent by 2022/23 without policy changes.
* Personal tax cuts "deferred to avoid further increasing debt". By putting off these tax cuts, the Government will save around $900 million a year from 2011.
* Superannuation Fund commitments on ice, with only a $250 million contribution this year. Annual contributions of about $2 billion to this fund will not now occur until the Government's books are next in surplus - not expected for the next 11 years.
* The Government will spend $290 million to start the $1.5 billion broadband to the home policy and will lift spending on state highways to $1 billion over three years.
* No cuts to benefits or other social welfare entitlements.
* Health spending is increasing by $3 billion over four years and $1.68 billion for education, justice by $950 million.
* $243.7 million for better insulating and heating homes.
* Projections show the economy will "trough" this year. In the year to March 2010, it will contract by 0.9 per cent, followed by a 1.7 per cent fall. In 2011, a 1.8 per cent growth is expected, followed by 2.9 per cent and 4 per cent in 2013.
* Unemployment is forecast to peak at 8 per cent in the September quarter of 2010.
* Budget cuts across Government have freed up $2 billion over the next four years, says English. This money will be "put back into Government priorities".
