Senior Minister Chris Bishop says today’s Budget will focus on things that need investment, while cutting things that don’t.
At 2pm today, Finance Minister Nicola Willis is set to lay out the Government’s plans. The Government has already indicated that today’s budget will focus on discipline and funding the basics.
Follow the 1News live updates of the Budget here
On Breakfast this morning, Bishop was asked what people who are dealing with the cost of living could expect.
“I think the point I would say to them is, it’s tough for them right now, and they’ve got to grapple with balancing the books and getting through day to day, and the Government is in exactly the same position.
“What they’ll be doing as households is really focusing on the things they need to invest in and cutting out the stuff they don’t because that’s what households do, and that’s what the Government is doing as well.”
He said the Budget would feature “big investments” in areas such as health and education, as well as a large capital pipeline, with money going to roads, rail, defence, schools, and hospitals.
As part of the Budget, the Government had already announced an additional $1.6 billion for defence; a plan to cut back almost 9000 public service jobs; reforms to social housing that included an income-related rent contribution increase; more money for school lunches and teaching basics; and a loan scheme to help businesses move away from gas.
The Deputy Prime Minister says the Budget will be admired around the world. (Source: 1News)
“But beyond the kind of things that you’d expect a government to be focusing on, we’ve really tried to chart a responsible path to getting the books back in order and get debt down,” Bishop said.
Also on Breakfast, Labour’s Kieran McAnulty said Bishop’s answers were a “long way of saying no, basically, that Kiwis shouldn’t expect too much else to come from this budget”.
“When this Government was elected on fixing the cost of living and making life easier, they’ll be looking at this Budget and saying, ‘is my life easier than what it was three years ago'?
“And for many of them, it isn’t.”
McAnulty cited those affected by the Government’s recently announced reforms to social housing and the cancellation of pay equity claims.
“I don’t think they will be too optimistic about today.”
'The trigger is about to be pulled' – McAnulty on Labour’s policy
With six months until the election, Labour is still holding its tongue on major policy announcements. (Source: Q and A)
Labour has made few major policy indications ahead of today’s Budget, despite the election being just a few months away.
Leader Chris Hipkins has maintained the party won’t make any announcements until the Budget has been released.
McAnulty said, after today, New Zealanders would be clear on Labour’s plans for the country should it take power in November.
“We’ve got the ideas, but we need to know to what extent we can do it,” he said.
“I’m not going to come out with my plan for social housing without knowing the extent of the damage that is being done to the books.”
He said: “The trigger is about to be pulled.”
Last year, Labour announced its plans to introduce free doctors’ visits, a capital gains tax, the New Zealand Future Fund, free cervical screening, and a family Doctor Loan Scheme.
Bishop said the slow release of policy showed Labour had an “inability to lay anything out”.
“Policy does not all depend on the Budget.
“The National Party had laid out comprehensive plans across vast swathes of the New Zealand economy that didn’t involve spending.
“Because that’s what governments have to do, they’ve got to govern as well, it’s not just about the spending.”
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