The Budget today has important implications for the Government, as it aims to put in place social spending initiatives which will come into effect in April or June 2014, giving them time to settle in before the general election later in the year.
Finance Minister Bill English has given a firm indication the Budget, to be released at 2pm, will include practical measures to tackle poverty.
There will also be changes to the social distribution of housing, and further measures to address housing affordability are expected.
Already, the Government has agreed to an Auckland City Council unitary plan to allow green and brownfield housing developments to try to ease housing shortages in the region.
The Government has also announced it will spend $377 million to build up to 3000 new state house bedrooms and 500 new homes.
The rebuilding of Christchurch needs further cash poured into it and, more importantly, a rush of building activity if National wants to retain its strong party vote from 2011.
The Budget will be about building up a base of voters prepared to see spending on a hand-up basis, rather than money spent on handouts.
With spending cuts almost a memory, the Government needs now to be seen spending on areas that create the most headlines, addressing poverty and housing.
There will be no blanket payment across New Zealand, as Mr English firmly believes in the need for families to provide for their children, and their own needs, where possible. This Budget is likely to be aimed at middle-income earners who can see the need for addressing poverty without necessarily creating a scramble for cash.
And this Budget will definitely be about winning the next election.
Pre-Budget spending
Spending already announced. -
• $48.3 million for Targeted Assistance for Participation Fund to give nearly 700 more children access to early childhood education.
• Extra $377 million to build up to 3000 new state house bedrooms in 2000 properties and 500 new homes in Auckland over next two years.
• $5.5 million over next four years to rebuild Mangere Refugee Resettlement Centre, in Auckland.
• $43 million over next four years to allow more Maori and Pacific Island students to pursue trades careers.
• More than $80 million over four years to help support parents and communities lift educational achievement of young people.
• Extra $1.5 million for Budgeting Services for 2013-14 to provide budgeting advice and support for people on low incomes.
• Additional $21.3 million over next four years to help lower rate of rheumatic fever among children.
• Extra $70 million for aged care and dementia services over next four years.
• Extra $73.5 million to fund the final 10 selected National Science Challenges over next four years.
• Extra $20 million for Conservation Department for additional frontline roles and upgrading recreational facilities.
• $4.5 million for 46 service providers working with young New Zealanders.
• Extra $158 million to tourism to accelerate work in attracting high-value tourists and supporting and increasing emerging and existing markets.
