Budget 2020 at a glance: The $50b plan

Author
NZ Herald,
Publish Date
Thu, 14 May 2020, 2:12PM
Photo / NZ Herald
Photo / NZ Herald

Budget 2020 at a glance: The $50b plan

Author
NZ Herald,
Publish Date
Thu, 14 May 2020, 2:12PM

THE BUDGET AT A GLANCE

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.

"This is the rainy day, put the umbrella up" – Finance Minister Grant Robertson

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 Māori, 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