It's the single biggest spending package in New Zealand's history - here's a breakdown of the numbers.
The Big Covid-19 Deal:
$50 billion more for the Covid-19 response plan. About $16 billion as a jobs package, including a further wage subsidies package and infrastructure boost.
Takes total Covid-19 related spending to $63 billion. About $20 billion remains in the kitty for future use.
How bad is the hit?
Unemployment forecast to peak at 9.6 per cent in September 2020, dropping back to 4.2 per cent within two years.
GDP growth rate: goes to negative 4.6 per cent for 2019/2020 – and stays negative until June 2022.
Deficit balloons to $9.6 billion this year and $10 billion next year. Forecast to track back towards surplus by 2028.
Net debt forecast to rise to 30.2 per cent of GDP this year and peak at 53.6 per cent in 2023 – up from 19 per cent in 2019.
Debts will rise from $58 billion in 2019 to $200 billion in 2024.
The Details:
$50 billion Covid-19 response package:
Includes: $15.9 billion jobs and business package:
$4 billion in business support – including $3.2 billion targeted extension to the Wage Subsidy Scheme for another 12 weeks. For companies which show more than 50 per cent monthly revenue drop compared to last year.
$3 billion more for infrastructure, including building 8000 state and social houses.
$1.6 billion free trades training and apprentice package
$1 billion on environmental jobs
$400 million Tourism Recovery Fund – including a domestic tourism campaign.
$900 million for Maori, including training and employment and health measures. $195m for Pacific peoples
Covid-19 package estimated to save 140,000 jobs over two years, and create more than 370,000 new jobs.
Other Budget measures:
$3.3 billion in new funding for health and education
Funding for NZ Defence Force Hercules fleet replacement
$1.2 billion for rail, including Kiwirail's Interislander ferry replacement
