The Government is holding back from spending the $14 billion remaining of the Covid-19 Recovery fund, setting it aside in case New Zealand experiences a second wave of the virus.
Finance Minister Grant Robertson made the announcement today after Cabinet agreed to spend an additional $3.2 billion for "ongoing health, border and economic response measures" in the coming weeks.
"This will leave $14 billion in the Covid Response and Recovery Fund, which is now being set aside in the event, for example, New Zealand experiences a second wave."
"The Fund is not there to be used for any old project in the never-never. It is to provide support and stimulus to recover and rebuild from Covid-19."
Mr Robertson said it would not be spent before the election and would be kept for "any future rainy day related to Covid-19"
He said it would be kept "in the back pocket" in case New Zealand needed to go back into lockdown or if the global economic uncertainty continues.
If it was not needed it would not be spent, Mr Robertson said, to avoid more debt.
Budget 2020 in May saw $20.2 billion put aside and unallocated - with $17 billion left over at the start of this month.
The upcoming $3.2 billion spend would pull it down to $14 billion left over from the fund.
Since May, the Government has given part of the funding to areas such as the income relief payment, the wage subsidy extension and PPE.
"As we look around the world, it is clear that this global pandemic is continuing to grow. In the face of this, and on-going uncertainty, now is the time to be cautious and keep our powder dry," Mr Robertson said.
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