2.45pm - Key points in the Government's 2004 Budget, announced today:
* $2.4 billion in new spending in 2004/05 rising to $3.8b by 2007/08.
* Operating balance for the end of this financial year to be $5.9b, with a forecast surplus of $5.7b for 2004/05, $5b in 2005/06; $5.1b in 2006/07, and
$5.4b in 2007/08.
* Debt as a percentage of gross domestic product (GDP) to fall from 24.7 per cent as at June 30, 2004 to 21.8 per cent by June 30, 2008.
* Working for Families package to be phased in over three years and costing $1.1b a year "at maturity". Families in the lower income bracket of $25,000 to $45,000 a year will get an average $100 a week extra.
* Health spending in 2004/05 to be $9.92b, a 3.47 per cent increase on 2003/04. This includes $30m in 2004/05, rising to $70m a year in four years, to double the number of major joint operations.
* Extra spending for early childhood care and widening eligibility for student allowances part of education measures. The number of services where early childhood care is free to be doubled. Adjustments to parental income thresholds mean nearly 12,000 students receiving a partial allowance will get a full allowance while another 28,000 will receive a partial allowance.
* $2b extra on education over four years takes spending on this sector to $9.2b by 2007/08.
* $2.1b committed to the New Zealand Superannuation Fund. As at June 30, 2005 the fund is to contain $6.3b; and $15.5b by June 30, 2008.
* Just over $1b being allocated to the justice system includes more money to build four prisons. These prisons are to cost about $610m. Around $180m, on top of $225m already allocated, is in this year's budget.
* $1b to the public sector to ensure departmental funding is adequate. The main beneficiaries of this are the Ministry of Foreign Affairs and Trade, Department of Child Youth and Family, Department of Corrections, and Defence.
* $128.9 million over the next three years allowing Housing New Zealand to buy 1054 new State homes and make improvements to a further 856.
* $75m over four years to increase subsidies for victims of accidents to get cheaper treatment from doctors, dentists and radiologists.
* $212m of new funding in research, science and technology over the next four years.
* $46.5m over four years to fight exotic weeds, pests and diseases.
- NZPA
Herald Feature: Budget
Related information and links
2.45pm - Key points in the Government's 2004 Budget, announced today:
* $2.4 billion in new spending in 2004/05 rising to $3.8b by 2007/08.
* Operating balance for the end of this financial year to be $5.9b, with a forecast surplus of $5.7b for 2004/05, $5b in 2005/06; $5.1b in 2006/07, and
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