Finance Minister reveals where extra $24b needed for Budget 2018 comes from

May 17, 2018

Some would come from reprioritisation, which is pulling money from other sectors.

Grant Robertson outlined where the funding for the extra $24 billion needed would come from for Budget 2018. 

"The government's Budget allowances over the next four years and 100-Day Plan spending is about $24 billion higher than planned by the previous government for the years 2018/19 to 2021/22," the Finance Ministry said in statement. 

Of the $24b, $7.9b comes from the reversal of National's taxcuts. 

"This will fund the Families Package and other 100-Day-Plan commitments."

Nine billion dollars would be pulled from "adopting a responsible debt reduction track", $5.3b would come from "higher tax revenue driven by higher-than-expected economic growth". and $1.5b would come from change to New Zealand's tax system and reprioritisation of funding. 

Reprioritisation is pulling money from other sectors.

As part of the reprioritisation, the Provincial Growth Fund, costing $1 billion per year, will pull $148m of existing funding as part of its operating costs, including $75m from the Tourism Infrastructure Fund and $13m from the Budget 2017 Between-Budget contingency. 

The Growth fund took $80m of existing funding to go towards capital, which could take a portion "of KiwiRail's capital injection for the 2018/19 financial year."

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