Today's Budget saw the announcement of $1.24 billion of new operating funding over four years and $785.6 million of capital funding in law and order initiatives.
The extra investment includes the $503 million package to boost police officer numbers by 880 over four years, which was announced by Prime Minister Bill English in February.
However, Police Association president Chris Cahill said the funding was necessary to maintain policing standards.
"It's crucial, without those extra numbers police would be in a real crisis,'' he said.
"We would obviously like them on the ground now, but we accept that's not practical, you've got to train them.''
Mr Cahill said without the announcement police would've been "suffering some crucial shortages in response and investigation areas''.
"We were just overloaded to breaking point. It's not just the big centres, it's the provincial centres that are also struggling.''
Mr Cahill said he was relatively pleased with how resources would be distributed throughout New Zealand's policing districts, and now waited to see how it was allocated.
Government documents related to the police funding boost show growing demand in areas such as family violence, resulting in emerging threats such as cyber crime, at times, going unpoliced.
"When you put your funding into attending family violence or attending burglaries it has to come from somewhere [else],'' Cahill said.
Deputy Prime Minister and Minister of Police Paula Bennett said the "Safer Communities Package'' will deliver an additional 1125 police staff and is part of the Government's "ongoing commitment to keeping New Zealanders safe''.
Justice and Courts Minister Amy Adams said the Budget will also provide an additional $1.52 billion to enable the justice sector to improve services and "further reduce the impact of crime''.
"It includes $145.8 million of operating funding over four years and $20.2m in 2016/17 to enable Justice and Courts to provide an enhanced level of service to deliver better outcomes.''
A spokeswoman for Adams' office said the $40.2 million allocated over the next four years and $2.1 million capital for investment in anti-money laundering was for phase 2 of the Government's plans for AML and countering financing of terrorism laws.
The AML and CTT Amendment Bill is currently before Parliament and will extend the Act's powers to cover lawyers, conveyancers, accountants, real estate agents, sports and racing betting, and businesses that deal in certain high value goods.
The Serious Fraud Office will also will receive an extra $1.4 million in operating funding and $840,000 in capital for an integrated case and evidence management system.
Less than 5% of fraud cases referred from the banking sector were investigated by police, government documents show.
Investment in law and order
• $32.9 million over the next 4 years for burglary prevention.
• $13.9 million over the next 4 years to reduce reoffending, targeted at-high-risk young offenders.
• $40.2 million over the next 4 years and $2.1 million capital for investment in anti-money laundering initiatives.
• $11.9 million over the next 2 years for additional security personnel across New Zealand's court system.
• $5.5 million over the next 2 years to continue the Iwi/Community Panels pilot. $51.6 million over the next 4 years to better manage offenders serving sentences and orders in the community, and to support the judiciary and Parole Board.
• $30.2 million over the next 4 years to improve the way prisoners at risk of self-harm and suicide are managed in prison.
• $1.4 million of operating funding over the next 4 years and $840,000 capital for the Serious Fraud Office.
