Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Budget 2014: Ready To Rise? Summary & Infographics

Budget 2014 - Winners and Losers

Budget 2014 - New Zealand v Australia

Ready to rise?
New Zealand Budget 2014

Summary

Despite carefully managed pre-Budget expectations, Budget 2014 has delivered two surprises: a surplus of $372m in 2015, significantly higher than the wafer thin surplus expected; and when taken over a four year period, higher planned new spending in health, education and welfare than was expected.

The higher surplus, despite extra spending, comes as a result of a forecast of strong economic growth of 3% in 2015 rising to 4% in 2016.

On the back of the strong economy, the
Government has announced it will increase new spending in future budgets by around $1.5 billion a year, half a billion dollars a year more than the 2014 budget allowance of $1 billion.

Budget 2014 forecasts rising surpluses over the next four years reaching $3.5 billion in 2018. These surpluses are committed to future capital and infrastructure expenditure.

Net debt peaks at $65 billion and then is held there while the economy grows. As a result, net debt is forecast to have reduced to the Government’s target of 20% of GDP by 2020.

A range of areas have benefited from extra Government spending. Children and families have been a real target. As widely predicted, paid parental leave has been extended to 16 and then 18 weeks, and the parental tax credit has been increased to $220 a week. Free GP visits and prescriptions have been extended to children up to 13 and more funding provided for early childhood centres.

Health receives $1.8 billion of extra funding over the next four years in an attempt to feed our insatiable appetite for health services.

Critical to our long-term future as a nation, education receives a range of extra support from $359 million to fund the Prime Minister’s ‘super principal/teacher’ programme, to an extra $199 million more invested in tertiary education. Three new centres of research (CoR) excellence will be established bringing the total to ten.

Encouraging innovation through R&D is a theme that runs through Budget 2014 with measures such as the new CoRs, more contestable science and innovation funding and modest tax relief for R&D companies.

Auckland infrastructure gets another boost with $375 million of additional capital funding for NZTA which will accelerate $815 million of new projects.

Another $1bn of the funds raised from the SOE floats was committed to various capital projects including schools, hospitals and KiwiRail.

The forecast projections show a reduction in the relative size of expenditure on the public service, which will keep the discipline on ‘reprioritisation’ of expenditure to fund new initiatives.

As expected, there was no softening of the Prime Minister’s political commitment to universal national superannuation from the age of 65.

Overall, Budget 2014 tries to strike a balance between returning to sustainable surpluses, allowing some more spending on key areas of need, and providing the fiscal backdrop to support economic growth. We think it largely achieves that.

Yet, after the December 2013 Budget Policy Statement, we saw five important challenges for Budget 2014. So how did it deliver?
...

Full doucment: Ready to rise?
New Zealand Budget 2014

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news