Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More

Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Recalibrating the Budget for wellbeing

Budget 2018 the last of its kind with a world-first “wellbeing Budget” mooted for next year

Deloitte partner David Lovatt says the announcement of next year’s wellbeing Budget shows Government’s commitment to a more holistic approach – a recalibration of the Budget process to encompass a broader definition of success.

“In this vein, today’s Budget is the last of its kind. But it isn’t clear at this stage exactly how a wellbeing Budget will be different from all the ones that have come before,” says Mr Lovatt.

The work being done by Treasury and Statistics NZ progressing the Living Standards Framework and measures of wellbeing signals an increasing role for the “other” capitals – social, natural and human – to balance out the traditional dominance of the financial/physical capital.

“That’s easy to say but hard to do – how exactly does a Budget need to change to pay appropriate respect to all four capitals? How do policy, regulation and legislation need to adapt in a world where growth is not measured purely in terms of GDP, but rather by enhancing wellbeing? And how should government agencies make decisions on the programmes and services they offer, or investments they should make, if economic and commercial results don’t rule the roost, but need to be balanced with social, natural and human outcomes instead,” asks Mr Lovatt.

To give a purely hypothetical example, imagine that government decides to boost natural capital in our fisheries, and social capital through recreational fishing, by reducing financial capital in the form of commercial fishing quotas. This is the kind of trade-off that could result from applying a wellbeing, four-capital perspective. If the change were substantial, it might boost our overall measure of wellbeing, but it could also cause material disruption to the commercial fishing industry.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

Most government agencies will not have experience evaluating and making these kinds of complex trade-offs between the four capitals.

“In general, Kiwis would support a more prosperous New Zealand with wellbeing in abundance. But the road there remains uncharted while government still lacks the vehicle to take us there. The Living Standards Framework and wellbeing measures provide a compass to guide us, but the real work lies in the future when government decisions reallocate between New Zealand’s four capitals of wellbeing,” concludes Mr Lovatt.

For Deloitte’s full Budget 2018 commentary and analysis go to www.deloitte.com/nz/2018budget.

You can also read Deloitte’s new series on wellbeing at www.deloitte.com/nz/stateofthestate.

ENDS

© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On The Attack Of The Tax Cut Zombies, And A Music Playlist


As long ago as 2007, New Zealanders were telling pollsters that while they wanted tax cuts, a majority of the public opposed tax cuts if the funding for them required cuts to social services. Seventeen years later, we’re still in the same boat. Almost on a daily basis, more evidence is emerging of the public services being scrapped or deferred to fund the government’s tax cuts election bribe, and its $2.9 billion tax handout to landlords. Earlier this week, the disabled community found out via a Facebook post that they are to be the latest victims of cost cutting. For all the government’s talk about being tough on crime, the Police are facing cuts to frontline services...
More


 
 


Government: GDP Decline Reinforces Government’s Fiscal Plan

Declining GDP for the December quarter reinforces the importance of restoring fiscal discipline to public spending and driving more economic growth, Finance Minister Nicola Willis says... More

ALSO:


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.