Budget 2008: Key points

Key points from today's budget:

* The Government commits $4.8 billion in 2008/09, rising to $7b in 2011/12 in operating spending and revenue initiatives and $1.9b in new capital spending between 2008/09 and 2011/12;

* Operating balance expected to decline over the forecast period from 4.8 percent of gross domestic product (GDP) in 2007 to 1.3 percent of GDP in 2011/12, reflecting the impact of policy initiatives and the weakening economy;

* Growth to March 2009 expected to bottom out at 1.5 percent before going to 2.3 percent in 2010 and 3.2 percent in 2011;

* A three-year programme of personal tax cuts, starting from October 1 this year, costing $10.6b. Once fully implemented, individuals working full time will get tax cuts of between $22 to $55 a week.

* New Zealand Superannuation maintained at 66 percent of the net average wage and the tax cuts to add $45.88 for a married couple and $23.84 for a single superannuitant living alone to the pension.

* Inflation adjustments to Working for Families entitlements to be brought forward from April 1 next year to October 1 this year;

* Some $3b over four years, $750 million per year, for health services. This includes an inflationary adjustment of $2b to district health boards to cover the increased costs for goods and services and population increases;

* $325m in the budget, as part of more than $500m, to improve high speed broadband in urban areas and extend its reach into regions;

* $1.8b over five years -- $619m in budget 2008 -- for teachers' wage settlements. Plus money ($182m in operational funding and $33.5m in capital funding) over four years to fund an extra 762 teachers to reduce class sizes for new entrants to one teacher per 15 students;

* $690m for the buy-back of Toll -- the previously announced $665m purchase price plus $25m to cover the costs of lease arrangements and staff secondments;

* $180m in operating funding and $9.5m in capital funding for the third and final tranche (332 sworn staff and 90 non-sworn staff) of the 1000 extra cops and 250 non-sworn police promised at the last election.

* The budget also put a figure on the New Zealand First-gained free off-peak travel for Supergold Card holders -- $72m over four years.

Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.6631 0.0102 1.56%
AUD 0.9131 0.0059 0.65%
EUR 0.6266 0.0106 1.72%
GBP 0.4396 0.0057 1.31%
HKD 5.1407 0.0779 1.54%
JPY 81.6040 1.4550 1.82%


Commodity Price Change Time
Gold Index 1065.8 9.600 2015-11-30T00:
Oil Brent 44.7 -0.510 2015-11-30T00:
Oil Nymex 41.6 -0.120 2015-11-30T00:
Silver Index 14.1 0.040 2015-11-30T00:


Symbol Open High Last %
NZX 50 6107.5 6136.8 6100.1 0.53%
NASDAQ 5139.6 5141.4 5127.5 -0.37%
DAX 11268.3 11430.9 11293.8 0.78%
DJI 17802.8 17837.2 17798.5 -0.44%
FTSE 6375.1 6387.1 6375.1 -0.30%
HKSE 22197.8 22284.3 21996.4 1.27%
NI225 19799.1 19951.7 19747.5 0.97%