A balanced and responsible Budget
It’s pretty unusual for a Government in election year not to increase spending, which is why I’m proud of this year’s Budget.
National inherited a disastrous set of financial problems from the previous Labour government. We’ve had to deal with a global financial crisis and two devastating earthquakes in Christchurch, on top of other challenges.
Most people know that we are borrowing $380 million a week just to pay the bills. Put simply, we have been spending more than we earn and it can’t go on. There will be a lot more pain for families in the future if we don’t make sensible adjustments now,
This year’s Budget puts forward a plan to pay off debt, get us back into surplus within four years and focus taxpayer money on the important things – like schools, hospitals and police.
Careful reallocation of money means we can afford to put $2.2 billion of new spending into health over the next four years. This includes new funding of $16 million for MidCentral DHB and $27 million for Capital Coast DHB, which is great news.
$1.4 billion is going towards education over the next four years, including an increase of around 3% in operational funding for schools.
Of course, rebuilding Christchurch is a major challenge and $5.5 billion will be used to set up the Canterbury Earthquake Recovery Fund.
Minor changes to KiwiSaver will help us save more as a nation and keep the scheme affordable. Right now borrowing to save just doesn't make sense. Government subsidies are being reduced and matched with private contributions, although the $1000 kickstart for new members will remain.
Working for Families will become better targeted towards those in need. Around 75% of families currently receiving this will get an increase in their payment from 1 April 2012, while a number of higher income families will receive less or no longer qualify. I think most people will agree this is a sensible move.
None of these changes will happen until after the election. We are clearly setting out our policies in advance and seeking a mandate from the public.
The good news is we can expect 170,000 new jobs over the next four years and higher wages as the economy recovers.
We can expect to see many of these jobs in Kapiti and Horowhenua with all of our big developments. $2.2 billion of investment is going into the Levin to Wellington Airport Road of National Significance, including Transmission Gully. We also have a new school in Waikanae on its way, new paramedics, five new police in Levin, ultra-fast broadband, new trains and flights beginning from Kapiti Coast Airport.
After a tough few years, the future is starting to look a lot brighter.