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


Budget 2020 Statement From Secretary To The Treasury Caralee McLiesh

The Treasury is responsible for the preparation of a number of Budget documents released today. The Budget 2020 documents have been prepared against the backdrop of the COVID-19 pandemic, which has added a number of challenges.

Ordinarily, to ensure that the Budget documents presented to Parliament on Budget Day reflect all Government decisions, it is common practice for a moratorium to be in place on Government financial decisions. This, ordinarily, is in place from the time Cabinet makes Budget decisions until Budget Day.

The swiftly evolving health-related and economic impact of COVID-19 has, however, meant that the Government has continually needed to make decisions to respond to this crisis. As a result, the Budget documents released today do not capture all Government decisions that have been made by Budget Day. Table 1 below outlines the key close-off dates for Government decisions for inclusion in the main Budget documents.

Expand the table below

DocumentsDates (2020)
2020 Budget Economic and Fiscal Update[1]6 and 20 April
Fiscal Strategy20 April
The Wellbeing Budget 2020: Rebuilding Together6 April
2019/20 Supplementary Estimates of Appropriations6 April
2020/21 Main Estimates of Appropriations6 April

In addition, the Wellbeing Outlook has not been published this year. The Government’s primary focus has been on responding to the rapidly changing economic impacts of COVID-19 and its immediate impact on wellbeing. It is planned that the Government will be able to provide the Outlook when circumstances become more stable, enabling more accurate measurement and analysis.

Impact on the Treasury’s forecasts

The Treasury’s fiscal forecasts assume the Government has made available funding of $62.1 billion to support the COVID-19 response and recovery, as do two out of four Treasury economic forecast scenarios. This funding comprises $12.1 billion for the Economic Recovery Package announced on 17 March, and $50 billion announced today for COVID-19 Response and Recovery Funding (CRRF).

Given that the Treasury’s forecasts incorporate the full amount of funding made available by the Government, the individual decisions taken since the finalisation of the forecasts do not significantly alter our overall view of the economic and fiscal outlook presented in the 2020 Budget Economic and Fiscal Update. However, due to the type of spending and phasing of the individual decisions, there is likely to be some minor impact on individual indicators presented in the 2020 Budget Economic and Fiscal Update.

Expand the table below

Year ending 30 June
Budget Day announcements      
Operating Expenditure5.
Capital Expenditure0.
Other decisions      
Operating Expenditure0.10.10.2
Capital Expenditure5.3(1.2)(0.4)(0.4)3.3

Including the measures announced prior to 20 April, the Government has committed $41.9 billion on the response to and recovery from COVID-19 and there is $20.2 billion of funding remaining in the CRRF.

When finalised, the Treasury’s forecasts assumed that the unallocated portion of the COVID-19 response and recovery funding was operating expenditure and temporary (to conclude by the end of the forecast period in June 2024). The measures announced today include approximately $7.2 billion of net capital expenditure and $1.4 billion of ongoing expenditure expected to continue beyond the forecast period. This will affect measures such as the operating balance before gains and losses, the cyclically adjusted balance, and the long-term projections reported in the Fiscal Strategy section of the Budget document.

Assuming no other changes in policy or economic forecasts, the ongoing expenditure will weaken the long-term projections. This will also affect the Fiscal Strategy Model published on the Treasury’s website.

The individual decisions announced today that have not been captured in the Treasury’s forecasts will be reflected in our next forecast round. This will be the 2020 Pre-Election Economic and Fiscal Update, due to be published between 10 August and 21 August 2020.

Parliamentary appropriation of expenditure

To ensure that any expenditure approved and announced after the early April close-off date for the 2019/20 Supplementary Estimates can be appropriated by Parliament before the end of the 2019/20 financial year, an Addition to the 2019/20 Supplementary Estimates will be presented to the House in June. This was also done in the 2011 and 2012 fiscal years to accommodate expenditure relating to the Canterbury earthquakes. The Addition to the 2019/20 Supplementary Estimates will be made available on the Treasury’s website in mid- June 2020 when it is presented to the House.

Expenditure for the 2020/21 fiscal year that has not been included in the 2020/21 Main Estimates Bill will be put before Parliament for appropriation in the 2020/21 Supplementary Estimates Bill, which will be introduced to the House on Budget Day 2021.

The Treasury will provide a summary of initiatives for the decisions announced today that have not been able to be reflected in the 2019/20 Supplementary Estimates and 2020/21 Main Estimates documents. It is expected that this will be available on the Treasury’s website in the week ending 22 May 2020.


  1. [1] The close-off dates for decisions will differ to the forecast finalisation dates referenced in the 2020 Budget Economic and Fiscal Update.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Twitter Wars, And The Muller Muddles

Whatever the failings of our own politicians, spare a kind thought for the majority of Americans who did not vote for Donald Trump. Sure, it was depressing this week to watch Todd Muller clinging for dear life to his talking points on Q&A, lest he be carried away in the slavering jaws of Jack Tame…. but this was mere incompetence, not malice. At the same time the President of the United States was (a) falsely accusing one of his media critics of murder, and (b) threatening to shut down Twitter for attaching a warning label to Trump’s attempt at poisoning the electoral process by falsely claiming that postal voting has led to extensive voter fraud... More>>


Government: Freshwater Package Backed By Comprehensive Economic Analysis

Decisions on the Action for Healthy Waterways package are supported by comprehensive environmental and economic impact analysis by leading New Zealand research institutes, universities, and private sector firms. More>>


National: "Todd Muller Announces Shape Of Next Government"

National Party Leader Todd Muller has announced the line-up of the next Government. “New Zealand is facing perhaps the toughest time that almost anyone alive can remember. “We are borrowing tens of billions of dollars to get us through this crisis. There ... More>>


Lockdown Rules: Timeline For Moving To Level 1 Needed

The BusinessNZ Network is calling for more clarity about the conditions under which businesses can move to Covid level 1. The network is concerned about large numbers of businesses that are at risk of closure if restrictions continue at the current ... More>>

Gordon Campbell: On National’s Day Of Reckoning

Congratulations. You are one of the 55 members of the National caucus being called together tomorrow to choose who will lead you to either (a) catastrophic or (b) honourable defeat on September 19, thereby saving some (but not all) of the jobs currently on the line. Good luck. Your decision process starts NOW... More>>


Budget 2020: Jobs Budget To Get Economy Moving Again

Investments to both save and create jobs in Budget 2020 mean unemployment can be back to pre COVID-19 levels within two years and could see the economy growing again as early as next year. More>>


Covid-19 Response: Law Setting Up Legal Framework For Covid-19 Alert Level 2 Passes

The law establishing a legal framework for the response to Covid-19 has passed its final reading and will become law in time for the move to Alert Level 2 tonight.
This is a bespoke Act designed specifically to stop the spread of COVID-19... More>>


Trans-Tasman Bubble: PMs Jacinda And Morrison Announce Plans

Australia and New Zealand are committed to introducing a trans-Tasman COVID-safe travel zone as soon as it is safe to do so, Prime Minister Rt Hon Jacinda Ardern and Prime Minister the Hon Scott Morrison MP have announced... More>>


Government: Support For Arts And Music Sector Recovery

A jobseekers programme for the creative sector and four new funds have been set up by the Government to help our arts and music industry recover from the blow of COVID-19. Thousands of jobs will be supported through today’s $175 million package ... More>>


Government: New Zealand Joins Global Search For COVID-19 Vaccine

Foreign Affairs Minister Winston Peters, Research, Science and Innovation Minister Megan Woods, and Health Minister David Clark today announced a COVID-19 vaccine strategy, which will enable New Zealand scientists to contribute to global research efforts ... More>>


The Dig: Steady State Economics: We’ve Got Some (systems) Thinking To Do

In this time of impending economic and ecological crises, we urgently need to aim for a sustainable or ‘steady state’ economy. In order to get there, we will need to adopt a ‘systems-thinking’ outlook taking into account the interconnections of our complex world.

In short, we’ve got some systems thinking to do... More>>


Election 2020: Parties Get Into gear

The Green Party is pleased to reveal its candidate list for the upcoming election. With a mix of familiar faces and fresh new talent, this exceptional group of candidates are ready to lead the Greens back into Government. Using the most democratic list ... More>>


Insight Into Regenerative Agriculture In New Zealand

There is a fast growing movement in New Zealand that has been happening out in paddocks, fields, gardens and hill country across the nation. It is a movement that holds the promise to reshape our productive land use industries towards systems that work with the natural environment to regenerate the land. The movement is that of regenerative agriculture. More>>


Covid-19: Tracer App Released To Support Contact Tracing

The Ministry of Health has today formally released the NZ COVID Tracer app to support contact tracing in New Zealand. Kiwis who download the app will create a digital diary of the places they visit by scanning QR codes displayed at the entrances to ... More>>


Govt: Deep Concern At Hong Kong National Security Legislation
Foreign Affairs Minister Winston Peters today reiterated the deep concern of the New Zealand Government following confirmation by China’s National People’s Congress of national security legislation relating to Hong Kong.... More>>






InfoPages News Channels