User:Bw0226/sandbox

This is page content.

Budget 2009
The fifth National Government’s first Budget was delivered in a global recession and rising national debt.

The 2009 Budget included new spending of $5.8 billion to “help maintain economic activity and to support jobs”. New spending included a home insulation and clean heating campaign, infrastructure investment and a national cycleway network.

The Budget confirmed 2009 tax cuts but deferred the second and third tranches of planned tax cuts in 2010 and 2011 as “unaffordable”. Automatic contributions to the New Zealand Super Fund were suspended. $2 billion of planned spending by the previous Government's was reprioritised.

Budget 2009 forecast gross debt to peak at 43 per cent of GDP in 2016/17.

Budget 2010
The main feature of the 2010 Budget was a tax package that lowered income taxes, reduced the company tax rate to 28%, and raised GST to 15%. There were adjustments to Superannuation, Working for Families and Benefits to compensate for the GST increase.

Depreciation on buildings with a life exceeding 50 years was removed and rules on Loss Attributing Qualifying Companies were tightened.

The 2010 Budget included new spending of $1.8 billion in health, education, research and broadband rollout.

The Budget forecast a return to fiscal surplus in 2016.

Budget 2011
Budget 2011 was delivered following earthquakes which devastated Christchurch and included a $5.5 billion rebuild package for the city.

The 2011 Budget was a “zero Budget” meaning no net new spending over four years. $5.2 billion was prioritised over four years for spending on mostly targeted at health, education and infrastructure. Individual and employer Kiwisaver contributions were increased.

The Budget announced the part-sale of five state-owned enterprises with the Government keeping majority control.

The 2011 Budget forecast a return to fiscal surplus to 2014/15.

Budget 2012
The 29011 Budget included $4.4 billion of new operating spending over four years, matched by offsetting savings and revenue initiatives. Health, education, the Christchurch rebuild, and research and development were major areas of new spending.

The Budget announced the Future Investment Fund to reinvest the proceeds of the part sales of state owned enterprises. The first allocation from this fund of $558 million was also announced.

Net core Crown debt was forecast to peak at 28.7 per cent of GDP. Budget 2012 was the second consecutive “zero Budget”.

Budget 2013
The 2013 Budget included $5.1 billion of additional operating spending over four years in health, education, welfare, and housing. $2.1 billion was added to the Christchurch rebuild, and ACC levies were reduced by $300 million in 2015 and by $1 billion in 2016.

An additional $1.5 billion allocation from the Future Investment Fund was announced.

The Budget forecast a return to fiscal surplus in 2014/15. A longer term fiscal target of reducing net government debt to 20% of GDP by 2020 was announced. Resumption of contributions to the Superannuation Fund was tied to this target.