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Budget Day 2020

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50 COMMENTS

    • 8000 new public houses

      Yes, with only 100 allowed in each pub we will need new public houses !

      A place to drown your sorrows,
      a pass will be issued to good comrades if you have done well that week in your re-education pogroms um ah er I mean programs

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  1. Executive summary

    We are fucked.

    Read past the gushing marketing hype and see where the money is really going. There is pittance for the productive economy. It’s worse than I thought.

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  2. $50 000 000 specifically for murri apprenticeships . Meh.
    8000 new state houses, thats seriously funny.
    $137 000 000 extra for farnow ora.
    $20 000 000 for murri cadetships, whatever that is.
    $197 000 000 for PI’s…

    Lolly scramble.com

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  3. They did have a plan all along, borrow,borrow,borrow,borrow borrow borrow borrow borrow borrow borrow borrow borrow and thats it folks.

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  4. Alfies hubby is throwing around thousands of millions of dollars yet still comes up with figures like $60.37 million ,its so gratifying that hes worked out the amounts to the last few thosand dollars as he spends billions ,what a F——-G joke ,we are heading for the biggest financial disaster in the history of the western world with this Idiot in charge.

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    • Absolutely agree with you. He has allocated billions for things they don’t know what to spend it on yet. No plan at all, just shotgun money at projects, some of which, like housing, they have already shown they aren’t capable of carrying out. It’s having no plan about a constructive way out of this mess that scares me the most. It is imperative for New Zealand that they are fired in September.

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      • Gorse ,the damage by september will already be immense ,I really fear for my kids and grandkids and have never thought that way before.
        Luckily we have a big house in case they all need to move back home..LOL.
        Thankfully the two youngest dont have mortgages to worry about .

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  5. It’s the election budget the COL wanted to deliver. Not much for real economic growth but plenty of $$ for the special groups. Nothing more than I expected from Cindy and her mate Robbo, and NZ First obviously have their sticky fingers in the election lolly jar too.

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    • Exactly WG, a boring budget for Joe Bloggs for sure. Smoke and mirrors. They can’t be held accountable for this budget and its promises before the election, and have 20 billion up their sleeve for election bribes.

      We all know they can’t build houses. We know our money is given to the benes more and more.

      I like the new subliminal messaging. You will have to retrain. Haha do you know what that actually means?

      The election is labours.

      After that, then we will see the tax reforms etc etc that may wake Joe up. In one year from now, NZ will see the real socialism at play that they that lord over us bring to the table.

      We will reap the harvest that they sow.

      Part of me hopes that I’m wrong. Another larger part wants it to bear out.

      Nothing will change until the awakening. We need to feel the pain before that happens.

      Boring budget. Same old same old.

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  6. I dont have a lot of time for Brudges but his speech was very good compared to Arderns Little sayings, key often used words ,and attempts at Maori ,this beeeaach is a sickening actor and is actually quite good at it and thats all shes got.
    Shes standing there lying about building 20 k new homes for the poor and underprivileged ,has the dumb F–K really forgotten about Kiwibuild so quickly ?

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  7. The productive sector has been ignored.

    All the money has gone towards non productive sectors and people. The big projects will all be ineffective and go massively over budget, as they invariably do even with competent government.

    This ruinous budget is just a down payment and all the failed green projects and brown people will be screaming for $$$ next year.

    We won’t see any recovery from this in our lifetimes. We are now a failed State. Your grandchildren may be lucky enough to see us become a “developing” country. Though they won’t get to enjoy it unless they are brown skinned.

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    • Kea ,yeah maybe some or those apprentice training schemes could be in banana bending ,we are gonna need a few of them, or car repossession specialty training ,that will be a great job to get into and guaranteed to be very busy in the coming months and years.,
      Or go the full hog and become a bankruptcy specialist lawyer ,there is bound to be a need for them for many years to come.
      Or just sit on your arse and wait for the free new home and unlimited taxpayer cash.

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  8. From the Taxpayers Union.

    “Overall impression: The Blank Cheque Budget – big set up for election announcements to come
    The economic landscape in New Zealand has fundamentally changed in recent months and if anyone had forgotten that fact, Budget 2020 is a wake-up call. Debt is expected to skyrocket, economic growth is projected to collapse, and unemployment is forecast to climb higher than during the GFC.

    The total size of the Government’s fiscal response is simply enormous. The Budget centre-piece is a $50 billion ($27,332 per household) ‘Covid-19 Recovery Fund’ to be spent over five years, which includes a (more focused) extension of the wage subsidy schemes among other policies.

    The Budget was clearly rushed and it showed. Much of the announcements are simply big numbers with no actual allocation. Think Shane Jones’s Provincial Growth Fund on steroids. All of the “Wellbeing” focus from last year has been unceremoniously canned. Unlike in recent years, none of the Associate Finance Ministers were anywhere to be seen and the Secretary of the Treasury did not speak to the room or make herself available to take questions.

    About half of the recovery fund has still been left available to be spent across the forecast period as required. More spending announcements should be expected in the coming months to be funded from this allocated balance.

    And yet despite the severe recession we now find ourselves in, the Government has still wasted plenty of taxpayers’ money. KiwiRail, our foreign aid budget, and NZ Post all receive big cheques.

    The economic view (Joe Ascroft – Consulting Economist)
    Skyrocketing debt

    Unsurprisingly, the Government’s Budget Responsibility Rules (which capped Government spending and debt in coming years) are dead. Net debt is forecast to climb from $57.7 billion ($31,500 per household or 19% of GDP) to $200.8 billion ($109,700 per household or 53.6% of GDP) by 2024. Deficits are expected to average $28 billion ($15,300 per household) per year across 2020 to 2022.

    It’s easy to get lost in the numbers – but these are truly eye-watering figures. More than one in every four dollars spent by the taxpayers will be borrowed over the next three years.

    Luckily for the Government (and taxpayers) borrowing costs are expected to remain low – in no small part due to the Reserve Bank’s quantitative easing (freshly-printed cash used to purchase Government debt) programme, which yesterday was doubled from $30 billion to $60 billion. If the Reserve Bank hadn’t embarked on this programme, financial markets might have struggled to digest forecast debt in coming years.

    To put that in context, $60 billion amounts to more than half what the Government plans to spend in the next year. To say the least, the Reserve Bank is doing a lot of heavy lifting to enable the Government’s spending programme.

    The big risk? If there is any inflationary pressure in the coming years, the Reserve Bank will have to pull back on printing money and push up interest rates. In that world, Government debt would become a problem very quickly.

    Unemployment climbs

    Treasury predicts unemployment to climb to 8.3% in 2020 and – with the aid of the Government’s $50 billion recovery fund – fall to 4.2% by 2022. However, if the fund fails in its goal to stimulate the economy (perhaps because the spending is poorly targeted, politically manipulated, or poorly managed) then unemployment will remain higher for longer. The main forecast (excluding the recovery fund) assumes unemployment will remain at 5.7% in 2022.

    The $50 billion fund

    The Budget centre-piece is a $50 billion ($27,332 per household) ‘Covid-19 Recovery Fund’ to be spent over five years.

    Today the Government has announced $15.9 billion ($8688 per household) of new initiatives to be packaged under the ‘Recovery Fund’ including:

    an extension of the wage subsidy scheme for businesses who have suffered at least a 50% fall in revenue ($3.2 billion or $1750 per household); and,

    a jobs package split across a variety of sectors including $1.6 billion ($874 per household) for trades and apprenticeships and $1 billion ($546 per household) for ‘environmental’ jobs.

    $10.7 billion ($5,847 per household) of this fund has already been allocated through to April.

    The Rest?

    The sector allocations Budget (at least in fiscal terms) pale in comparison to the sheer size of the recovery fund, but still deserve mentions:

    $1.2 billion ($655 per household) more has been wasted on KiwiRail – despite a decade of Treasury advice that rail is not worth the cost.

    $1.77 billion ($967 per household) has been allocated for defence – of which about half is for new aircraft.

    A $3 billion ($1640 per household) infrastructure investment fund.

    A $55.6 million increase in foreign aid.

    $280 million ($153 per household) for NZ Post (old-fashioned snail mail, not couriers).

    The Politics (Neil Miller – Analyst)
    The Minister of Finance Grant Robertson describes Budget 2020 as a “once in a generation” budget to combat “a 1-in-100-year threat” of the global COVID-19 pandemic. It certainly contains high level of additional spending, headlined by the $50 billion COVID-19 Response and Recovery Fund (of which only about $20 billion is still actually available today).

    To put $50 billion in context – the amount of new spending in a normal year’s budget is usually about one to three billion.

    This spending will be funded by significant increases in debt as tax revenue will remain steady. There are no new taxes or tax increases announced which will be something of a relief to taxpayers.

    However, it is also a “blank cheque” budget. Under the large headline figures, there is often a lack of detail about the spending which makes the quality of many proposals hard to assess. During questions, the Minister indicated that some of the $20 billion will go to Health (including laboratories and contact tracing) but the decisions were yet to be made. We have the bill, but do not know what we are going to be served.”

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    • An absurdly optimistic projection that ignores the cumulative knock on effects.

      I wonder if the msm will give a Per Household breakdown…

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    • “There are no new taxes or tax increases announced which will be something of a relief to taxpayers.”

      Speak to me after the election.

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    • New Zealanders sure love Big Government. (To be fair, it’s not just New Zealand.)
      Can’t people look after themselves and be left alone by the State?

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      • I would prefer to look after me and mine, and accept the personal responsibility for doing so. I do not wish to be taxed to cover some one else’s responsibilities if they are too tired to do so. I do not need the intrusive government that costs so much.

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    • Thanks for that info MH

      So, the $70 Billion in additional Govt debt i have been predicting for more than 5 weeks comes to pass…and then some.

      Some people call a yacht a hole in the water you throw money at.
      It looks like Kiwi rail is the Govt’s Yacht.
      Just more money after more money.
      I would not use that valuer that gave Kiwirail a revaluation upwards last year.
      It is a loss making thing in perpetuity

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  9. …There are other worrying trends.

    “There is evidence of interest group capture resulting in high levels of spending which are hard to justify. This includes funding boosts for certain industries (racing, fishing, arts, sports and more coming soon for media), certain voting blocks (including the $911m Maori COVID-19 package and the Pasifika funding parcel), and certain failing industries (KiwiRail gets a projected boost and NZ Post gets Government support despite being “no longer financially viable”).

    The Government is also centralising decision making into new bureaucracies. “Workforce Development Councils” will “strategically plan” for the recovery of industries and jobs, and “Regional Skills Leadership Groups” will “improve information gathering”. This is not a small investment – $276 million ($150/household) for a lot of officials, boards, reference groups, and consultation meetings. The Government is also planning to run a bulk food distribution operation called the “New Zealand Food Network” despite a number of companies and organisation already working in this space.

    A “Infrastructure Industry Reference Group” is considering 1924 applications for $136 billion of projects. Clearly not all of these will be of high quality or quick to start. A new road in starting in 2023 is little use to the unemployed in 2020 and 2021.

    The increased Government control of the economy mirrors increased Government control of freedoms. Budget 2020 confirms that this is a hands-on Government, even if the details of what it might have its hands on remain sketchy.

    The Taxpayers’ Union will continue to provide expert additional analysis as our team has time to consider the details further. One early concern is that the Government’s projections on unemployment remaining under 10% and economic growth returning next year seem very optimistic.

    It appropriate to finish by acknowledging the hard work of Treasury officials and Ministerial staff preparing this document. This Budget was not what they planned six months ago or even six weeks ago. The key decisions were signed off on 6 April, very late in the normal Budget cycle. Minister Robertson even mentioned that some of the decisions in today’s papers were made on Monday. However, it is an important Budget and needs to be scrutinised closely to ensure taxpayers are receiving value for their money.

    As you can see Mike, this Budget (and the election campaign to come) is going to need a lot of scrutiny if we are to avoid a 1970s-style ‘big government’ economic paralysis. We’ll be burning the midnight oil over the next few days as we wade through the detail and pick out what the politicians don’t want you to know.”

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  10. My predictions of a punishment budget were correct, just early

    How silly of me! I gave massively too much credit to the CoL – I worked on the basis that they’d be fiscally prudent and use harsh measures to balance the books now that the tax take has taken a nose dive.

    I thought they had some integrity and start doing the hard work now of trying to fill the Grand Canyon size hole in our national accounts.

    Which of course was incredibly naive and (as usual) foolishly over-optimistic of me.

    Instead we have a pork-barrel give away to special interests, the equivalent of the bad tenant who steals all the appliances, rips up the floor boards to use for firewood, leaves rubbish in the cupboards and smears shit all over the walls drawing artfully around the holes in the plasterboard.

    Which is actually genius politics if you are evil. If they win the next election – they have three clear years to implement all the nasty punitive measures I talked about in my comment earlier this week.

    If they lose, well whoever governs after them is going to have clear up the mess Labour made and suffer the ire of the voting public for doing so.

    I predict Labour winning in September – their intention is to mask how bad unemployment is going to be (I predict north of 10%) until after the election. Their win will be followed (like last time( by another out of cycle budget to raise taxes and crush the productive sector of the economy)).

    Silly me for imagining even for a second that they’d behave in a fiscally responsible fashion.

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    • You have pretty much nailed it, DP. The bit that terrifies me, well, bits.

      * They are likely to win the next election, agreed.
      * We’re entering a 2 year period with increase police surveillance, less control on the police and an increase in power for non-elected officials.
      * The debt levels are increasing tremendously. I don’t think they are sustainable for a small country so reliant on external input.
      * The current government is incapable of running the economic recovery.
      * The next government is going to feel a lot of pain. I can’t believe that Jacinda Ardern and her MPs are so blinded that they cannot see the pain they are creating, which leaves me thinking this is planned.
      * I’d expect seizure of private property and enterprise as the government attempts to run businesses better to be part of the next Labour term.

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      • Heard the expression a couple of days ago “blinded by her own awesomeness”. Yep, They appear blind to the consequences of what they are imposing.

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  11. NZ Food Network.
    It horrifies me to think what the hell this will mean.Government should have nothing to do with food distribution and I can only think this has Green Party fingers all over it.
    Food distribution takes place now .Producers deal with what they produce and the system works .
    It is a frightening budget and others have said our kids are in for a tough time.
    Can’t say I was impressed with Bridges reply in the house and I am sure it was tradition to call for a vote of no confidence in the budget.Cindy seized on that one.

    I sent a provisional tax payment off on the 7 th May. Makes me spew.

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    • I sent a provisional tax payment off on the 7th May.

      Yeah, time to stop that shit. I can see my income decreasing rapidly.

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        • The real question is will small business operators and sole traders (who make up a huge silent majority of NZ businesses) be able to access any of the relief that was announced in the budget. I suspect not. I’ll be talking to my accountant about finding a way – if they’re going to crush us in the future – I want my handouts now (I’m going to be paying for it anyway).

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    • “NZ Food Network.”

      They intend to seize control of food production and distribution as they did the past 6 weeks.

      Anyone not Party approved was shut down by armed police and dragged away. Farmers were dumping food or ploughing it into the ground because they didn’t have contracts with Party approved supermarkets.

      It going to get way way worse after the election. I could tell you but I don’t want to spoil the surprise.

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    • The Romanian people were allocated bland food by the state under Nicolae Ceaușescu so their cultural foods would die out – nobody could be an individual under communism. So they wouldn’t be discovered some country people cooked food deep in forested areas for their family and neighbours. You can’t stop people being individuals or eating well.

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  12. The commie bitch, the career alcoholic and the fat queer are laughing their asses off.
    Why? Because they don’t give a shit and this mess they made will never affect them.

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  13. Well at least if the economy is going to be planned and controlled from the Beehive we can be assured that tractor production will increase year on year even if us peasants starve.

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  14. Budget 2020: Winston Peters rejects ‘helicopter’ cash payouts to all Kiwis to help stimulate economy

    Helicopter payments won’t be used by the Government as a means to help stimulate the economy after Covid-19, according to Deputy Prime Minister Winston Peters.
    https://www.tvnz.co.nz/one-news/new-zealand/winston-peters-rejects-helicopter-cash-payouts-all-kiwis-help-stimulate-economy?auto=6156507906001

    Speaking to media today, the Deputy Prime Minister was questioned about that $20.2 billion potentially going directly into the pockets of Kiwis through a universal cash handout.

    “We don’t believe in helicopter payments,” said Mr Peters.

    “We believe in investment strategies that take people on to a better life and provide them real hope.”

    “We’d like to see it spent on smart, clever economic recovery strategies.

    “This time, we’ve got to diversify our markets, be smarter, add value here, have far greater wealth export strategies and make far more money per person, like the Nordic countries do, like Iceland does.

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  15. Saw David Seymours ACT alternative budget on KB.
    A great idea was cutting GST to10% immediately for 3 years. That would have helped every one straight away and would have been ongoing.
    Too simple for this lot of idiots.
    Overall all the ACT proposals made good sense.

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    • Someone posted David Seymours ACT alternative budget on YSB last night or early this morning.

      Party vote ACT ✅

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  16. Budget 2020: Next generation will pay price as Government expected to post eye-watering deficits for foreseeable future
    https://www.newshub.co.nz/home/politics/2020/05/budget-2020-next-generation-will-pay-price-as-government-expected-to-post-eye-watering-deficits-for-foreseeable-future.html

    COVID-19 is expected to saddle the Crown with a deficit of $28 billion this year and get used to it – Treasury thinks New Zealand will stay in deficit until 2028.

    “I think that’s pie in the sky stuff,” economist Cameron Bagre said. “I think the reality here is that we’re going to see fiscal deficits for a long time.”

    This year the country’s debt levels will balloon to 30 percent of New Zealand’s entire worth. It will keep swelling to more than 50 percent in a few years time – that’s about $200 billion to keep people in jobs and businesses afloat.

    Just a few months ago New Zealand had one of the lowest debt ratios in the world – now it’s in line with Zimbabwe and China.

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    • Yes, and Labour can’t duck this one. Labour will never, ever, be able to accuse National of economic mismanagement. This is history making, they will talk about this mess in 100 years time, shaking their heads with disbelief. From one of the better managed countrIes on the planet to one of the worst – in two and a half years.

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  17. Mrs. Pyle was keen to get out and do some shopping today. She told me I would be going with her and two little grand Pyles. It was nice to go and pick up some necessities as well as some treats for the grand Pyles.
    What wasn’t nice was seeing how cowed and scared people looked. It wasn’t nice seeing people unable to be themselves, keeping their “social distance”. That as well as dealing with cashiers behind a perspex screen. What the hell has happened to this country in 8 short weeks?
    I don’t like it and I think this is just the start of Ardern’s reign of terror.

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  18. I see Robbo has Alfs wedding ring on , I wonder if he got rogered when he got his big fat arse home

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The way we all feel about this useless government

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