Coalition plans $42b of capital spending
The Government will be throwing $42 billion at net capital spending over the next five years when Finance Minister Grant Robertson delivers his first Budget next week.
This is $10 billion more than forecast over five years by the previous Government before the election, Robertson told a Wellington Chamber of Commerce audience yesterday.
‘‘We have to build the strong foundations that give every New Zealander the chance to succeed. Healthier, more secure, bettereducated people have the best chance of getting ahead in life.
‘‘The capital investments to be announced on May 17 will allow us to give a long-overdue boost to health to ensure that our hospitals are fit for purpose and can cope with a growing and ageing population,’’ Robertson said.
Robertson and Prime Minister Jacinda Ardern have been playing down the public’s expectations ahead of the Budget, saying the problems they have found on taking power were much bigger than anticipated.
The funding shortages and state of buildings across district health boards have been highlighted as an example, along with others such as education, which means some promises like making GP visits $10 cheaper on July 1 will now be phased in over the next three years.
Last week, Education Minister Chris Hipkins revealed $1.1b more was needed in this year’s Budget to allow for an extra almost 17,000 students in the system by 2020 and to give greater attention to the Christchurch rebuild and ongoing maintenance.
‘‘Education will also get a significant investment to support our schools to deal with ageing buildings and increasing enrolments,’’ Robertson said.
‘‘We are upgrading our transport network to ensure we have a safe, efficient transport system, and will make the largest investment of our lifetimes into New Zealand’s regions via the $1b per year Provincial Growth Fund.
‘‘A Budget is always a balancing act and we have been responsible by making sure we have created the room to make the critical investments we need to, while maintaining New Zealand’s resilience to any future shocks.
‘‘We are doing this while meeting the Budget Responsibility Rules, meaning we are running a surplus in this Budget and across the economic cycle,’’ Robertson added.
‘‘Budget 2018 begins an economic and social transformation that must happen if we are to improve New Zealanders’ quality of life and living standards. We are investing in the future.’’