Budget 2020

What does the "Rebuilding Together" Budget mean for New Zealand?

This is a big, bold Budget. The Government has sent a strong signal that they are committed to economic recovery from COVID-19, and are ready to keep spending to speed up the recovery. 

The economic threat posed by COVID-19 is significant, and this Budget is tightly focused on immediate response and recovery. The most significant announcement today was the establishment of the $50 billion COVID-19 Response and Recovery Fund (CRRF), with over $20 billion of it still to be spent over the next 4 years.

The Government has set a broad direction for the recovery, and does seem to be leaving room for the private sector to determine how it will rebuild and what that rebuild will look like. However, with net debt rising to levels not seen since the 1990s, the longer-term consequences of this Budget will be felt for generations to come. What does recovery look like from an intergenerational equity point of view? How will the books be rebalanced in the future? And, how will agencies ensure this money is spent effectively and efficiently given the sheer volume of investment announced today (with more still to come)? 

$29.8 billion has been committed through Budget 2020 - almost ten times more than the Government was planning to spend pre-COVID-19. This is a solid Budget for unprecedented times, but some areas are conspicuous in their absence. We will be watching the Government’s ‘rolling maul’ of announcements for more investment in the wider health sector, ‘shovel ready’ infrastructure projects, the social safety net, as well as environmental sustainability.

Key investments:
  • $4 billion business support package, including an extension of the Wage Subsidy Scheme

  • $3 billion infrastructure investment package, and a sizable public housing programme to create jobs

  • $1.6 billion trades and apprenticeships training package

  • $1 billion environmental jobs package

  • $3.3 billion new funding to strengthen core services including health and education

Explore further

What is the economic impact of COVID-19?

When is the economy expected to recover?

What does wellbeing mean in recovery?

What further support is provided to businesses?

What is the Financial Markets Reaction to Budget 2020?

How is Budget 2020 addressing Māori Business needs?

Where was sustainability in Budget 2020?

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