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Source: New Zealand Government

“New Zealand’s strong health response means we have weathered the 1-in-100-year COVID economic shock better than most. However, we will continue to face ongoing uncertainty for some time, and Budget 2021 takes a balanced approach to investing in areas and people where it is needed most, alongside careful fiscal management to pay down debt.”

The operating allowance for this Budget is $3.8 billion per year, with capital allowances for Budget 2021 to 2024 increasing to $12 billion. This increase is possible because the economy has performed better. Operating allowances for future Budgets have been set at $2.7 billion per year as the immediate need for stimulus declines.

“The Government will continue to invest in New Zealand’s future and advance our three priorities of keeping New Zealanders safe, accelerating the recovery and dealing with long‑standing issues of climate change, child wellbeing and affordable housing,” Grant Robertson said.

“We are investing in reducing social inequalities and making a material difference to the daily lives of the more vulnerable among us. Our recently announced housing package will assist first home buyers and boost the supply of new homes. We will continue to invest in the country’s infrastructure, such as roads, hospitals and schools.

“We can’t meet all our long-term commitments in one Budget. This is part of a package that will address our priorities and build the sort of society that New Zealanders want,” Grant Robertson said.