2023 New Zealand budget

Last updated

2023 (2023) New Zealand budget
Coat of arms of New Zealand.svg
Submitted by Grant Robertson
Presented18 May 2023
Parliament 53rd
Party Labour
Website Budget 2023
‹  2022

Budget 2023, titled "Support for today, Building for tomorrow", is the New Zealand budget for fiscal year 2023/24 presented to the House of Representatives by Finance Minister, Grant Robertson, on 18 May 2023 as the fifth budget presented by the Sixth Labour Government. The budget was released in the midst of rising living costs and recovery efforts following the 2023 Auckland Anniversary Weekend floods and Cyclone Gabrielle in January and February 2023. [1] [2]

Contents

Background

On 11 May 2023, Finance Minister Grant Robertson stated that the 2023 budget would focus on four overarching themes: supporting New Zealanders with cost of living, delivering services that New Zealanders rely on, recovery and resilience, and "fiscal sustainability." [3] Prime Minister Chris Hipkins stated that the budget would focus on easing cost of living pressures while making targeted investments to promote economic growth. The budget was released amidst rising living costs and inflation, and the economic and social devastation caused by the 2023 Auckland Anniversary Weekend floods and Cyclone Gabrielle between January and February 2023. [2]

Major announcements

Climate change

Cost of living

Cyclone recovery

Education

Health and disability

Infrastructure and housing

Responses

Treasury

In response, the New Zealand Treasury forecast that New Zealand would avoid a recession due to the rebuilding programme resulting from the Auckland floods and Cyclone Gabrielle. The Treasury also forecast that New Zealand's economy would not return to surplus for another year due to declining tax revenue and the Government's 2023 budget decisions. [8]

Political

Prime Minister Chris Hipkins defended Finance Minister Grant Robertson's handling of the 2023 budget, arguing that it would help New Zealand avoid an inflation. He predicted that inflation would return to between 1–3 per cent by the end of 2024 and reiterated the Government's focus on preparing for future climate-related "extreme events." [9]

The opposition National Party leader Christopher Luxon accused the government of "wasteful spending," labelling the 2023 budget "the blowout budget." National also criticised the budget's cost-of-living measures including free public transport, free early childhood education, and removing the $5 prescription medicines co-payment. [9] Deputy leader Nicola Willis claimed that the budget would lead to higher inflation and mortgage payments. While she welcomed the Budget's early childhood education policy, she claimed that National's policy was better. [10]

The budget received a mixed response from the Green Party. While the Greens welcomed several measures in the budget including public transport initiatives, and funding for early childhood education and warmer homes, Co-leader Marama Davidson criticised the budget for falling short on supporting people, addressing climate change, and implementing a wealth tax. [9] Fellow Co-leader James Shaw welcomed the budget's NZ$1.4 billion on climate change mitigation and the expansion of the country's electric charger stations but opined that the budget could have done more on addressing climate change and child poverty. [10]

ACT Party leader David Seymour stated that the Government was "running out of other people's money and excuses." While Seymour welcomed the Budget's infrastructure funding and medicinal support measures, he said that he did not support the Budget's increased overall spending and deficit, claiming that it would lead to a ten percent mortgage rates increase by the end of the year. [9] [10]

The budget also received a mixed response from Te Pāti Māori. Co-leader Debbie Ngarewa-Packer welcomed the funding boost to the Te Matatini kapahaka festival but said that the Budget still favoured the wealthy and failed to reduce the cost of food by removing the Goods and Services Tax. [9] [10]

The Opportunities Party criticised the 2023 budget for not addressing unfairness in New Zealand's taxation system, insufficient investment in young people, insufficient investment in the community housing sector, and the lack of long-term infrastructural investment plan. [10]

Academics

Economist Shamubeel Eaqub welcomed the budget's emphasis on infrastructure, stating that New Zealand has an infrastructure deficit of NZ$210 billion. [10]

Civil society groups

Greenpeace Aotearoa New Zealand spokesperson Christine Rose criticised the 2023 budget for allegedly emphasizing corporate profit over addressing climate change and the cost of living. [10] By contrast, Federated Farmers criticised the Government for not investing in the farming sector and imposing "impractical, unpragmatic, and unfair regulations" on the farming sector in the midst of rising operating costs. [10]

The New Zealand College of Midwives praised the increased health spending within the 2023 budget, particularly the five percent increase for midwives. The College called for a strategic approach to job retention for midwives. [10]

The Free Fares campaign praised the Government's decision to introduce free public transportation for under-13 year olds and half-price fares for under-25 year olds. However, it criticised the Government's decision not to extend half-price fares to older age groups. [10]

Related Research Articles

<span class="mw-page-title-main">Climate change in New Zealand</span> Emissions, impacts and responses of New Zealand related to climate change

Climate change in New Zealand involves historical, current and future changes in the climate of New Zealand; and New Zealand's contribution and response to global climate change. Summers are becoming longer and hotter, and some glaciers have melted completely and others have shrunk. In 2021, the Ministry for the Environment estimated that New Zealand's gross emissions were 0.17% of the world's total gross greenhouse gas emissions. However, on a per capita basis, New Zealand is a significant emitter, the sixth highest within the Annex I countries, whereas on absolute gross emissions New Zealand is ranked as the 24th highest emitter.

<span class="mw-page-title-main">Chris Hipkins</span> Prime Minister of New Zealand in 2023

Christopher John Hipkins is a New Zealand politician who has served as leader of the New Zealand Labour Party since January 2023 and leader of the Opposition since November 2023. He was the 41st prime minister of New Zealand from January to November 2023, previously serving as the minister for the public service and minister for education from 2017 to 2023, and the minister for health and the COVID-19 response from 2020 to 2022. He has been the member of Parliament (MP) for Remutaka since the 2008 general election.

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<span class="mw-page-title-main">2012 New Zealand budget</span>

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<span class="mw-page-title-main">2023 New Zealand general election</span> General election for the 54th Parliament of New Zealand

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<span class="mw-page-title-main">2021 New Zealand budget</span> Government budget for fiscal year 2021/22

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<span class="mw-page-title-main">2023 Auckland Anniversary Weekend floods</span> New Zealand natural disaster

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<span class="mw-page-title-main">Cyclone Gabrielle</span> Category 3 South Pacific cyclone in 2023

Severe Tropical Cyclone Gabrielle was a severe tropical cyclone that devastated parts of the North Island of New Zealand and affected parts of Vanuatu and Australia in February 2023. It is the costliest tropical cyclone on record in the Southern Hemisphere, with total damages estimated to be at least NZ$13.5 billion (US$8.4 billion), of which the cost of insured damage is at least NZ$1.73 billion (US$1.07 billion). The total cost in the Hastings District alone is estimated to surpass NZ$2 billion (US$1.25 billion). It was also the deadliest cyclone and weather event overall to hit New Zealand since Cyclone Giselle in 1968, surpassing Cyclone Bola in 1988. The fifth named storm of the 2022–23 Australian region cyclone season, and the first severe tropical cyclone of the 2022–23 South Pacific cyclone season, Gabrielle was first noted as a developing tropical low on 6 February 2023, while it was located on the south of the Solomon Islands, before it was classified as a tropical cyclone and named Gabrielle by the Bureau of Meteorology. The system peaked as a Category 3 severe tropical cyclone before moving into the South Pacific basin, then rapidly degenerated into a subtropical low on 11 February 2023.

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References

  1. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 "Budget 2023 at a glance: What you need to know". Radio New Zealand . 18 May 2023. Archived from the original on 23 May 2023. Retrieved 26 May 2023.
  2. 1 2 Rt Hon Chris Hipkins. "Support for Today, Building for Tomorrow". Budget 2023. New Zealand Treasury. Archived from the original on 21 May 2023. Retrieved 26 May 2023.
  3. ↑ Robertson, Grant. "Budget 2023: $4 billion of savings and reprioritisation". Beehive.govt.nz. New Zealand Government. Archived from the original on 17 May 2023. Retrieved 29 May 2023.
  4. 1 2 3 4 5 6 7 8 9 10 11 Houlahan, Mike (19 May 2023). "A steadfast and stolid Budget". Otago Daily Times . Archived from the original on 24 May 2023. Retrieved 29 May 2023.
  5. ↑ "Flood, cyclone recovery: Govt to spend $1b on education, transport projects, mental health". Radio New Zealand . 14 May 2023. Archived from the original on 14 May 2023. Retrieved 17 May 2023.
  6. ↑ Dexter, Giles (15 May 2023). "Government's cyclone recovery package: 'It will be a journey' – Councils, opposition react". Radio New Zealand . Archived from the original on 15 May 2023. Retrieved 17 May 2023.
  7. ↑ "Wellbeing Budget 2023 Support for today, Building for tomorrow" (PDF). New Zealand Treasury. 18 May 2023. ISBN   978-1-99-004591-2. Archived (PDF) from the original on 3 December 2023 – via New Zealand Government.
  8. ↑ Ensor, Jamie (18 May 2023). "Budget 2023: New Zealand to avoid recession, but surplus delayed". Newshub . Warner Bros. Discovery New Zealand. Archived from the original on 18 May 2023. Retrieved 5 June 2023.
  9. 1 2 3 4 5 Neilson, Michael; Pearse, Adam (18 May 2023). "Budget 2023 live updates: How MPs reacted – 'blowout', says National; Greens want stronger action on climate, poverty". The New Zealand Herald . Archived from the original on 24 May 2023. Retrieved 5 June 2023.
  10. 1 2 3 4 5 6 7 8 9 10 Sadler, Rachel; Swift, Molly (18 May 2023). "Budget 2023 live updates: The latest announcements and reactions on the Government's spend-up". Newshub . Warner Bros. Discovery New Zealand . Retrieved 5 June 2023.
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