Thursday, May 18, 2006

Today the New Zealand Finance Minister, Hon. Dr Michael Cullen, presented the 2006 New Zealand Budget to the House of Representatives. There is a NZ$8.5 billion OBERAC surplus and a NZ$1.5 billion cash surplus.

It has been labelled as the “Bondi Budget” by National leader Don Brash, “Helen Clark and Michael Cullen believe there is a place for tax cuts – it’s called Australia” he said.

The budget allocates new operating spending of $9.6 billion and capital of $2.7 billion over the next four years.

Key issues in the budget includes:

• The Telecom New Zealand local loop unbundling (released earlier due to leak).
• $1.3 billion extra for transport.
• $3 billion extra for health care, over the next four years.
• $361 million extra for schooling
• $166 million extra for tertiary education and skill training
• $162 million extra for early childhood education