NZ Finance Minister introduces 2006 budget

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
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