Analysis: No Budget lolly-scramble is unusual for election year

May 18, 2023

Jessica Mutch McKay said Grant Robertson’s sixth is a “pretty straight up and down Labour budget”, but not a normal election year one.   (Source: 1News)

Grant Robertson's sixth Budget was a pretty straight up-and-down Labour offering, but less typical for an election year, says 1News Political Editor Jessica Mutch Mckay.

One of the big ticket items was the extension of the 20 hours free early childhood education to two-year-olds.

For those with young families, it will make a big difference - $130 extra a week.

That's a big deal.

The Finance Minister sold it as a bit of a two-for-one - it's good for kids to have that education and care outside the home, and it also gets people into the workforce.

There wasn't much extra cash for Robertson to play with

—  Jessica Mutch McKay | Political Editor

Crucially, however, as many New Zealanders already pay for their two-year-olds, it is not new spending so won't add to inflation.

Treasury is now forecasting inflation will fall to the 1-3% target late next year. It's currently 6.7%.

That, combined with the cyclone and flood recovery, means there wasn't much extra cash for Robertson to play with.

There was little in the way of money to combat climate change, no extra boost for beneficiaries, or to help with the cost of food.

It's an election year, but the only lolly scramble on offer at Parliament today was for the journalists.

Finance Minister Grant Robertson talks to media about the 2023 Budget

Early childhood education, free or cheap public transport for young people, axing of prescription fees - there is still stuff people can take away from the Budget.

But for middle income New Zealanders, especially those without kids or with older ones, they might look at the announcements and think there's nothing major in there for them, marking quite the departure for a year when Kiwis go to the polls.

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