2020 New Zealand budget


Budget 2020, dubbed "Rebuilding Together", is 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–present. This budget occurs during the COVID-19 pandemic in New Zealand and on the same day that the country exits the lockdown brought about by alert level 3.

Background

The 2020 budget was released in the midst of the global COVID-19 pandemic, which spread to New Zealand in late February 2020.
In response to an increase in the number of COVID-19 cases, the country entered into a nationwide lockdown on the evening of 25 March, in which all non-essential businesses were closed.
Because of the closure of businesses, the government offered a $12.1 billion wage subsidy scheme to offset employment costs in an attempt to keep as many New Zealanders as possible in their jobs.
The original contents of the budget were set aside and replaced with a plan on how New Zealand will recover from the lasting effects of COVID-19, of which this budget is only the first step. Finance Minister Grant Robertson states that the economic recovery for New Zealand will create an extended operating deficit and increase debt to above previous targets, however he points out that New Zealand entered the COVID-19 crisis with a debt of below 20% of GDP compared to the United States with 90% and the United Kingdom with above 75%. The budget expands on the $12 billion New Zealand Upgrade Programme infrastructure project.

Major announcements

The 2020 budget includes allocating NZ$50 billion to the COVID-19 Response and Recovery Fund, which will be spent on several areas including a NZ$3.2 billion wage subsidy scheme, business support, trades training support, a NZ$1.1 billion environmental jobs package, $900 million to support Māori, housing, and extending the school lunch programme. NZ$15.9 billion will be spend on rejuvenating the economy while NZ$20.2 billion will be put aside for future investment.

Arts and Culture

On 14 May, Leader of the Opposition Simon Bridges described the 2020 budget as the "greatest burden of debt" in New Zealand history and accused the Government of burdening the country's children and grandchildren with NZ$140 billion worth in debt. Business New Zealand chief executive Kirk Hope welcome the 2020 budget's free trades and apprenticeship scheme, describing it as a way of "turbo-charging" the economy. Tourism Industry Aotearoa chief executive Chris Roberts welcomed the NZ$400 million tourism recovery fund and wage subsidy scheme but stated that further extensions were needed to support the tourism sector. Mental Health Foundation chief executive Shaun Robinson welcomed the Budget's investments in addressing family violence, Whānau Ora services and housing, and targeted funding towards Māori.
The New Zealand Council of Trade Unions welcomed the 2020 Budget's efforts to address the economic effects of the COVID-19 pandemic through wage subsidies, free trades training, and increased health spending and social spending but opined that other issues such as higher wages needed to be tackled. The Aotearoa New Zealand Association of Social Workers welcomed the 2020 budget's investment into aiding disabled people and addressing elder abuse and child abuse but expressed disappointment at the pay gap between social workers in statutory organisations and non-governmental organisations.
Auckland Action Against Poverty criticised the 2020 budget for not doing enough to aid welfare beneficiaries. Fish & Game New Zealand welcomed the Budget 2020's announcement of NZ$1.1 billion investment to create 11,000 environmental jobs in the regions. The Opportunities Party's leader Geoff Simmons criticised the 2020 budget for prioritising businesses over people and advocated a universal basic income in order to stimulate economic growth.