You can’t always budget to get what you want
Let’s hope Govt gives us what we need
The Government
has previously outlined health reforms and
investing in initiatives to reduce emissions
and meet the country’s climate goals would be
today’s focus.
The Wellbeing Budget 2022 will be revealed today by Finance Minister Grant Robertson. Budget day is one of the major events on the Treasury calendar and is a time when economists and political pundits go mad about what the Government is spending money on.
It is not something circled on my calendar — numbers aren’t my thing — but there are still some things worth noting.
In December, Roberston announced the operating allowance for Budget 2022 would increase this year to a one-off $6 billion.
The allowances are then reduced to $4b in Budget 2023, then $3b in Budgets 2024 and 2025. The multi-year capital allowance will increase to $9.8b.
“This one-off increase in operating allowance is designed to ensure we can forge ahead with major reform programmes that will have long-term benefits for New Zealand,” Robertson said.
“The remainder of the allowances will cover significant cost pressures and fulfilling our manifesto commitments.
“This will require prioritisation, and striking a careful balance between the important projects that need to be done and the ongoing need for fiscal sustainability.”
In the lead-up to the big day, ministers have been announcing pre-budget funding packages including one with a direct Bay of Plenty impact.
On Tuesday, Health Minister Andrew Little committed to expanding the Mana Ake programme with $90 million set aside to start services in the Bay of Plenty, Lakes and some other parts of New Zealand.
The school-based programme gives children the skills and support to deal with issues that include grief, loss, parental separation and bullying.
Meanwhile, on May 8, more than $560m in funding was promised for police, going towards additional frontline staff, while a new firearms unit and a package to help protect businesses from ram raids was promised.
And $94m was also announced to go towards tackling gangs and organised crime.
We all know how much of an impact crime has on our part of the world, as has been extensively covered by this newspaper recently.
I think this package is promising, given the amount of strife in the Bay of Plenty, and is really needed. I was genuinely surprised at the state of affairs in this part of the world after moving down from Auckland last year and it’s certainly a lot different from the dairy farm plains of Otago where I grew up.
The Government has previously outlined health reforms and investing in initiatives to reduce emissions and meet the country’s climate goals would be today’s focus.
Ministers have already promised plenty in these spaces.
Along with the Mana Ake decision, Little has promised the Budget will include a $100m investment over four years for a specialist mental health and addiction package, highlighted by $27m for community-based crisis services.
In terms of New Zealand’s climate change goals, the Government has previously revealed its plans to reduce greenhouse gas emissions to eventually reach net zero by 2050.
On Monday, $4.5b in funding was unveiled as part of the Emissions Reduction Plan to tackle the impact of climate change and help reduce global warming.
Included in the funding is $569m for the Clean Car Upgrade to help lower and middle-income households scrap high-emitting vehicles in exchange for electric and hybrid alternatives.
Despite agriculture still being outside the Emissions Trading Scheme, the sector will receive $710m over four years from it to help lower emissions in the sector and develop “green fuels”.
A $230m investment would also go towards apprenticeships, extending Apprenticeship Boost to the end of 2023 and supporting 38,000 apprentices.
It would also see support for 1600 Mana in Mahi places to help people find work and funding to continue the Ma¯ ori Trades and Training Fund, building on the 17 established partnerships that are supporting more than 800 people.
In the midst of an ongoing pandemic, the Government has decided to focus on health and climate change. This is all well and good, but in my opinion these are not the only issues facing Kiwis.
The cost of living is increasing with household budgets stretching as inflation runs higher than it has in the past 30 years. Tough times are on the horizon.
I agree with the National Party’s Nicola Willis — now is not the time to be adding more unnecessary costs or embarking on big bureaucracy-building ventures.
But as the Rolling Stones wrote, “you don’t always get what you want”.
As has been revealed, in part due to the pandemic, New Zealand’s health system is a mess and we can’t keep putting off climate change action.
But my biggest and most immediate concern is for people — from business owners to employees, families to friends, everyone.
Will this Budget really tackle the problems they face today, tomorrow, next week and next year?
One can only hope.