Budget 2020 was announced today so we’ve put together a summary of the key takeaway points. ‘Rebuilding Together’ establishes the $50 billion COVID-19 Response and Recovery Fund to support our economy and kick-start our recovery.
- The budget had as its central theme protecting jobs, creating jobs and training people for jobs.
- The government expects that it will need to spend $50 billion to fight the Coronavirus crash. However, only $15.9 billion has been allocated to this budget.
- In a nutshell they have spent 16 billion already, 14 billion spent in rent months and have another 20 billion in case it is needed.
- 2 billion has been allocated to wage subsidy scheme, but the handout is narrower, in that it only applies for 8 weeks and Businesses must show that their revenue has dropped by 50% compared to last year as opposed to the original 30% noted at end of March.
- There has been an additional 5 billion allocated in infrastructure with 6,000 new public homes and 2,000 transitional homes being built and $1.6 billion for trades and apprenticeship training.
- Tourism has been allocated $400 million, which is probably lower that what they would have expected, although the wage subsidy will help.
- $400 million will be spent expanding and strengthening Work and Incomes employment support services.
- A $20 million tertiary hardship fund has been established to help students who are in serious financial hardship.
- 11,000 green jobs will be created in the regions with a price tag of $1.1 billion.
- There are no tax increases, but low interest rates will assist the Government in controlling its budget for the next 6 years of expected deficits.
- The economy is expected to shrink by 20% for the June 2020 quarter and unemployment is expected to rise to just under 10% for the September Quarter.
For more information, please visit: https://budget.govt.nz/