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Politics

Budget 2021 live: The 10 things you need to know

2 minutes to read
NZ Herald brings you full Budget coverage as well as analysis, reaction and a look into what it all means for Kiwis. Video / NZ Herald

NZ Herald brings you full Budget coverage as well as analysis, reaction and a look into what it all means for Kiwis. Video / NZ Herald

Derek Cheng
By:

Derek Cheng is deputy political editor for the New Zealand Herald

Budget 2021

The Goodies:

1. WELFARE AND FAMILIES: Benefits will increase by between $32 and $55 a week, while student living support will go up $25 a week. Overall, this will cost $3.3 billion over four years.

2. MĀORI HOUSING: $380m for 1000 new homes for Māori, repairs for 700 Māori –owned homes; ring-fencing $350m of the $3.8b housing fund announced in March for at least 2700 Māori homes.

3. INFRASTRUCTURE: An extra $15.1 billion (bringing the four-year total to $57.3b from 2021 to 2025), including $810m for KiwiRail, $761m for school property, $700m for hospitals, and, in a surprise announcement, $306m for Scott Base.

4. CLIMATE CHANGE $19.7m for future response to the Climate Change Commission's final recommendations. Recycling revenue from the ETS will also add $3b over five years for this.

5. HEALTH: Labour keeps election promises with an extra $200m for Pharmac, but back-down on free annual GP visit and eye check for Supergold cardholders as it is of "limited benefit".

6. COVID: There's $5.1b left in the $62b Covid response and recovery fund. Treasury forecasts a "significant opening" of the border on January 1 next year.

The Numbers:

7. HOUSING PRICES: Treasury forecasts annual house price growth to peak in June (17.3 per cent) this year, stalling at 0.9 per cent next year, then edging up again to 2.5 per cent in 2025.

8. JOBLESS: Unemployment is forecast to peak at 5.3 per cent in September this year, then fall to 4.4 per cent by June 2025.

Read More:
• Budget boost for beneficiaries: The Government's 'two-bird-one stone' Budget
• Live blog: Kiwis react to Budget 2021; what it means for you
• Govt expecting 'very sharp' drop in house price growth

9. GROWING THE PIE: Economic growth expected at 2.9 per cent for this year, then to 4.4 per cent for 2023. Better-than-expected books means the Government's operating allowance this year is $3.8b.

10. DEBT:The Government expects to borrow an extra $100b in the five years to 2025. Net core Crown debt peaking at 48 per cent of GDP in 2023. The next surplus is expected in 2027 - at 0.1 per cent of GDP.