Budget key points

Key points in today's Budget:

* Operating balance of just over $4 billion projected for 2002/03 -- reduced to $1.36b once revaluations and accounting changes are taken into account;

* Projected surpluses of $3.8b in 2003/04, then $4.5b, $5.3b and $6.2b in subsequent years;

* Growth expected to halve over the next 12 months to 2.2 per cent before rebounding to 3.2 per cent in 2004/05, 3.1 per cent in 2005/06 and 2.8 per cent in 2006/07;

* Gross debt at 27.3 per cent -- the lowest level since the Government began collecting data in 1971 -- and forecast to decline as a proportion of gross domestic product (GDP) to 23 per cent in 2006/07;

* The budget brings ahead by a year the full contribution rate to the New Zealand Superannuation Fund with a $1.879b payment for 2003/04;

* $140 million of new operational funding in research, science and technology over the next four years. The proportion of new funding for 2003/04 is $33.5m, up 6 per cent, bringing total public spending to $557m;

* $15m in 2003/04 with a total of $110m over four years has been set aside to respond to the recommendations of four taskforces on biotechnology, design, screen production, and information and communication technologies;

* $73m over four years to promote overseas trade. This includes $14.2m over four years to support World Trade Organisation negotiations, bilateral closer economic partnerships and trade agreements;

* An extra $55m for early childhood education over the next four years bringing total spending in that sector in 2003/04 to $421m -- an 8 per cent increase. Some $39m of the new money goes for staff pay increases and operations cost increases; * Total education spending increases by $393m, bringing total spending to $8.2b in 2003/04. New funding of $61.2m over four years is the increase in operational funding to schools;

* The budget injects a one-off $77.6m for information and communications technology for schools;

* The Government made a pre-budget announcement of $167m over four years to pay for 774 new teachers;

* Maximum fees for tertiary students set and linked to consumer price index, and tertiary subsidies rates outlined for the next three years;

* Total funding for tertiary students $422m over four years;

* Total health spending to reach $9.61b in 2003/04. New funding of $443m this year, of which $400m had been previously announced;

* Nearly $100m to provide another 318 state houses and extend 80 houses for larger families -- this is on top of the 2393 state homes already planned -- and about $60m to accelerate the modernisation programme for state houses as part of nearly $260m in extra funding for housing low-income people.

* Fifty extra police and a mobile DNA squad for Auckland, $6.6m over four years to fund two police methamphetamine lab clean-up teams as part of $256m package over four years to fight crime. This includes pre-budget announcement of $41.5m for the probation service.