advertisement


FIND
Jobs Search Jobs $100k+ Jobs Dating Single men Single Women Ticketek My Ticketek Venues
Readers recommend...
VIRAL VIDEOS
Coca-Cola Small World MachinesCoca-Cola Small World Machines US mother faces drug smuggling charges in MexicoUS mother faces drug smuggling charges in Mexico Speeding driver sees traffic jam too lateSpeeding driver sees traffic jam too late
Hot Topics on MSN NZ:
NZ snowstorm Bear paws seized Kim K's baby name

Government shuffles money in a zero budget

15:18 Wed May 23 2012
AAP
The government is going to shave money off departments across the board as it puts more budget money into health, education and welfare
The government is going to shave money off departments across the board as it puts more budget money into health, education and welfare (Getty)

Finance Minister Bill English is preparing to present another tight budget with new spending for health, education and welfare coming from savings shaved off other departments.

He's also going to announce on Thursday changes to tax rules which he is describing as "patching up some holes" in the system.

It will be his second zero budget in a row, with little or no new money in it as the government struggles to get on top of debt and return to surplus in 2014/15.

Tobacco excise will push up the price of cigarettes, and a previously announced regime for student loan repayments will also deliver extra revenue.

Liquor could also cost more after Thursday but that can't be confirmed.

Prime Minister John Key says tax changes involve "one or two adjustments - it isn't anything too scary".

He isn't giving much away and said in his final pre-budget comments on Wednesday there will be "one or two surprises but there's not going to be anything dramatic".

Mr English told parliament the budget would invest significantly in infrastructure, skills and innovation.

"It will build a stronger, more competitive economy," he said.

Opposition parties are warning there will be a raft of cuts spread across departments as the government puts more money into voter-friendly areas like more operations and faster cancer treatment.

They don't think the budget is going to have anything in it to generate economic growth and create jobs.

Labour's finance spokesman, David Parker, says consecutive zero budgets are proof of failure.

Mr English says it's the responsible way to deal with an economy that's been under stress because of the international financial crisis and the Christchurch earthquake which is costing the government nearly $6 billion.

Most popular videos
Nigella Lawson Allegedly AssaultedNigella Lawson Allegedly Assaulted The Big Chill's On Its WayThe Big Chill's On Its Way Stand-off At Auckland BankStand-off At Auckland Bank Concerns Over Scheme To Reduce BeggarsConcerns Over Scheme To Reduce Beggars Deluge Hits Salmon Farm HardDeluge Hits Salmon Farm Hard