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

The Ministry for the Environment is the public service department of New Zealand charged with advising the New Zealand Government on policies and issues affecting the environment, in addition to the relevant environmental laws and standards. The Environment Act 1986 is the statute that establishes the Ministry.

<span class="mw-page-title-main">Disaster risk reduction</span> Preventing and reducing disaster risk factors

Disaster risk reduction aims to make disasters less likely to happen. The approach, also called DRR or disaster risk management, also aims to make disasters less damaging when they do occur. DRR aims to make communities stronger and better prepared to handle disasters. In technical terms, it aims to make them more resilient or less vulnerable. When DRR is successful, it makes communities less the vulnerable because it mitigates the effects of disasters. This means DRR can make risky events fewer and less severe. Climate change can increase climate hazards. So development efforts often consider DRR and climate change adaptation together.

<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 been serving 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.

<span class="mw-page-title-main">Climate finance</span> Type of investment in the context of climate action

Climate finance is an umbrella term for financial resources such as loans, grants, or domestic budget allocations for climate change mitigation, adaptation or resiliency. Finance can come from private and public sources. It can be channeled by various intermediaries such as multilateral development banks or other development agencies. Those agencies are particularly important for the transfer of public resources from developed to developing countries in light of UN Climate Convention obligations that developed countries have.

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

The New Zealand budget for fiscal year 2012–2013 was presented to the New Zealand House of Representatives by Finance Minister Bill English on 24 May 2012.

<span class="mw-page-title-main">Sixth Labour Government of New Zealand</span> Government of New Zealand (2017–2023)

The Sixth Labour Government governed New Zealand from 26 October 2017 to 27 November 2023. It was headed first by Jacinda Ardern and later by Chris Hipkins, as Labour Party leader and prime minister.

<span class="mw-page-title-main">2018 New Zealand budget</span>

The New Zealand budget for fiscal year 2018/19 was presented to the New Zealand House of Representatives by Finance Minister Grant Robertson on 17 May 2018.

<span class="mw-page-title-main">2019 New Zealand budget</span>

Budget 2019, dubbed the Wellbeing Budget, was the name given to the New Zealand budget for fiscal year 2019/20 presented to the New Zealand House of Representatives by Finance Minister Grant Robertson on 30 May 2019. This was the second budget presented by the Coalition Government. Its release was complicated by the accidental publication of budgetary documents on a test website two days prior to its official release on 30 May, attracting significant media and public attention.

<span class="mw-page-title-main">New Zealand Upgrade Programme</span>

On 29 January 2020, the New Zealand Upgrade Programme was announced by Prime Minister Jacinda Ardern. The programme is a $12 billion infrastructure package to improve roads, rail, hospitals and schools around the country, of which $8 billion has been allocated and the other $4 billion is part of the infrastructure section of the 2020 budget.

<span class="mw-page-title-main">2020 New Zealand budget</span> Budget of New Zealand for the year 2020

Budget 2020, dubbed "Rebuilding Together", was the New Zealand budget for fiscal year 2020/21 worth NZ$50 billion, presented to the House of Representatives by Finance Minister Grant Robertson on 14 May 2020, the third budget presented by the coalition government of 2017–2020. This budget occurred during the COVID-19 pandemic in New Zealand and on the same day that the country exited the lockdown brought about by alert level 3.

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

Budget 2021 is the New Zealand budget for fiscal year 2021/22, presented to the House of Representatives by Finance Minister Grant Robertson on 20 May 2021 as the fourth budget presented by the Sixth Labour Government. This budget occurs after a year of several lockdowns due to the COVID-19 pandemic in New Zealand and focuses on economic recovery.

<span class="mw-page-title-main">Infrastructure Investment and Jobs Act</span> Legislation of the 117th United States Congress

The Infrastructure Investment and Jobs Act (IIJA), also known as the Bipartisan Infrastructure Law (BIL), is a United States federal statute enacted by the 117th United States Congress and signed into law by President Joe Biden on November 15, 2021. It was introduced in the House as the INVEST in America Act and nicknamed the Bipartisan Infrastructure Bill.

<span class="mw-page-title-main">2022 New Zealand budget</span> Government budget for fiscal year 2022/23

Budget 2022, dubbed the Wellbeing Budget 2022, is the New Zealand budget for fiscal year 2022/23, presented to the House of Representatives by Finance Minister, Grant Robertson, on 19 May 2022 as the fifth budget presented by the Sixth Labour Government. This budget was released in the midst of socio-economic impacts of the widespread community transmission of the SARS-CoV-2 Omicron variant, rising living costs, and the 2022 Russian invasion of Ukraine.

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

Beginning on Friday, 27 January 2023, regions across the upper North Island of New Zealand experienced widespread catastrophic floods caused by heavy rainfall, with Auckland being the most significantly affected as the Auckland Anniversary holiday weekend began.

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

Severe Tropical Cyclone Gabrielle was a destructive 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 damage estimated to be NZ$14.5 billion (US$9.2 billion), in which NZ$3.18 billion (US$2 billion) are insurance loss. The cost of the cyclone in the Hawke's Bay alone was estimated to outstrip NZ$5 billion (US$3.17 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.

<span class="mw-page-title-main">2023 New Zealand mini-budget</span> Government mini-budget for fiscal year 2023/24

The 2023 New Zealand mini-budget, also known as Mini Budget 2023, was released by Minister of Finance Nicola Willis on 20 December 2023 as part of the Sixth National Government's plan to address the cost of living, deliver income tax relief, and reduce the tax burden. The Government's mini-budget delivered NZ$7.47 billion in operational savings by repealing or stopping 15 programmes launched by the previous Labour Government including 20 hours of free child care for two-year olds, eliminating depreciation for commercial buildings and dissolving the Climate Emergency Response Fund.

<span class="mw-page-title-main">First term of the Sixth Labour Government of New Zealand</span> Term from 2017 to 2020

The first term of the Sixth Labour Government of New Zealand lasted between 2017 and 2020. It was formed on 19 October 2017 following coalition agreements between the Labour, Green and New Zealand First parties. Three years later, Labour won a landslide victory in the 2020 general election and was returned for a second term.

<span class="mw-page-title-main">Second term of the Sixth Labour Government of New Zealand</span>

The second term of the Sixth Labour Government of New Zealand lasted between 2020 and 2023. It was formed following the Labour Party's landslide victory in the 2020 New Zealand general election. In mid January 2023, Prime Minister Jacinda Ardern resigned and was succeeded by Chris Hipkins. During the 2023 New Zealand general election held on 14 October, Labour lost its majority to the opposition National Party. The Government remained in a caretaker capacity until the new National–led coalition government was sworn in on 27 November 2023.

<span class="mw-page-title-main">2024 New Zealand budget</span> Government budget for fiscal year 2024/25

Budget 2024 is the New Zealand budget for fiscal year 2024/25 presented to the House of Representatives by Minister of Finance, Nicola Willis, on 30 May 2024 as the first budget presented by the Sixth National Government, ignoring the mini-budget they presented in December 2023.

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. Archived from the original on 18 May 2023. Retrieved 5 June 2023.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.