All eyes will be on Parliament next week when Finance Minister Nicola Willis unveils the coalition government’s first Budget.
Budgets have historically been something of a lottery.
Vast sums of money are traditionally thrown at health, education, housing and crime, but many would argue at times there have been few tangible results from the cash windfalls.
Housing Minister Chris Bishop has already announced $140 million will allocated in the Budget as new funding for 1500 new social housing places to be provided by Community Housing Providers, not Kāinga Ora.
Much of the pre-Budget talk this year has predictably been about tax cuts, although questions remain how they will be funded given Prime Minister Christopher Luxon has vowed to get the country’s “books back in order”.
Luxon reaffirmed his commitment to tax cuts in his pre-Budget speech earlier this month, saying the government would provide cost of living support to “low- and middle-income families”.
The tax cuts come as significant reductions have already been made in the public service, which has resulted in hundreds of job losses.
“I acknowledge that the savings programme has been difficult for those affected,” Luxon said of those cuts.
“But, above all else, the first priority of government must be to achieve the best possible outcomes for the money we collectively spend on behalf of taxpayers – the best hospitals, the best schools and the safest streets.
“This year, we will deliver income tax relief to low- and middle-income working New Zealanders for the first time in 14 years. I’m proud of that,” he said.
While tax cuts will inevitably hog the headlines come Thursday, there will be plenty of interest in where else the government throws its financial support.
From a rural perspective, rural health funding, regional roading and biosecurity are just some of the areas that need attention.
Smaller groups and organisations whose very survival relies on continued government funding will also be keeping a close eye on the Budget.
Farmers Weekly recently spoke to catchment group advocate Mandy Bell, who is involved in attempts to form a national Aotearoa NZ Catchment Community group and give a more unified voice to the initiative.
It’s a nervous time for several catchment groups, who soon face an end to their funding.
Since 2022 the government has contributed more than $47m to groups throughout the country. Some of the larger groups have funding confirmed until 2026, but most are running out of cash, with funding expected to stop in June. Bell said their future is dependent upon how the government’s Budget allowances play out.
A report on New Zealand land use by the Parliamentary Commissioner for the Environment, Simon Upton, cites catchment groups as a good local institute to put control of central government policy into. However, he also noted they are not a panacea, and they need to be well resourced.
In the lead-up to last year’s election, National made its play to win back the rural vote by vowing to get Wellington out of farming and empower farmers to chart their own course.
Thursday would be the perfect time to start that process.
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