Budget Summary: Budget 2005 at a glance
Budget 2005 at a glance
- Strong financial management continues to produce budget surpluses that will cover contributions to the NZ Superannuation Fund, maintain debt at prudent levels and meet the government's capital investment needs.
- Debt in dollar terms begins to rise, due to cash deficits of $1.9 billion a year on average from the third year, ruling out any big budget spend-ups in the near future.
- KiwiSaver workplace savings accounts are introduced to help people save for their retirement: the government will contribute $1000 to each account and subsidise fund management fees.
- New support for first home buyers, including a home deposit subsidy of up to $5000 and easier access to mortgage insurance.
- Business tax relief of $1.4 billion over the next four years: $720 million will be recycled from carbon charges.
- Personal income tax thresholds to rise by 6 per cent every three years, protecting taxpayers against inflation.
New funding over the next four years of:
- $4.09 billion for Vote Health
- $297 million to lift quality and relevance in tertiary education
- $57 million to increase support for tertiary students
- $45 million for industry and trade training
- $204 million for research, science and technology
- $169 million to supply schools with more teachers and bigger budgets
- $30 million for information technology in schools
- $152 million for early childhood education services
- $173 million to deliver a record budget for police
- $47 million for at-risk children and families
New capital funding of:
- $410 million for defence
- $131 million to build another 1300 state houses over the next four years
- $100 million a year, for three years from 2006, to improve land transport
All budget figures in this media pack are GST exclusive