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Budget 2004: At A Glance

Budget 2004: At A Glance

- A large budget: $2.4 billion in new spending in 2004-05, rising to $3.8 billion by 2007-08.

- A prudent budget: gross debt forecast to drop to 21.8 per cent of GDP by 2007-08; surpluses of above $5 billion forecast.

- Economic outlook positive: unemployment and inflation to remain low; wages to increase steadily; growth to dip to 2.5 per cent in 2005-06 before rebounding back over 3 per cent.

- Working for Families when fully in place will: benefit more than 300,000 families; deliver an average increase of around $100 a week in direct income assistance to families in the $25,000 to $45,000 bracket, substantially reduce child poverty.

- Working for Families will: ensure people are better off from working; are able to provide their children with a decent start in life; receive their full entitlements.

- Health funding to reach $9.92 billion next year.

- Education: primary and secondary to get another $2 billion over four years; $365 million to pre-school education; $259 million to the tertiary sector.

- $500 million over four years for Growth and Innovation.

- Another 1054 state houses next year, upgrades to a further 856.

- Another $2.1 billion to the New Zealand Superannuation Fund.

- Strong law and order package, including funding for four new prisons.

- $1 billion to restore departmental budgets to realistic levels so that they are able to meet their obligations, including a further increase to the Department of Child Youth and Family.


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