2012 Budget highlights

Here’s some of the more significant aspects of the 2012 Budget:

  • Household savings rate is positive for the first time in a decade, and is forecast to increase to almost 4% by 2016
  • Unemployment is forecast to drop below 5 per cent by 2015
  • Forecast fiscal surplus in 2014/15 is $197 million
  • Core Crown expenses to fall progressively from 33.5 per cent of GDP in 2011/12, to 30.2 per cent of GDP in 2015/16
  • $385 million of new investment over four years in research, science, and innovation
  • $250m from asset part-sales going towards Kiwirail
  • Deferring the auto-enrolment exercise for KiwiSaver, until surplus is locked in
  • Goals No 2 and 3 of 10 announced – reducing prisoner reoffending by 25% in five years and increasing the rate of participation in early childhood education to 98%, up from 94.7% currently
  • $1.5 billion extra to Vote Health over four years – will include 4,000 more elective ops a year
  • Tobacco excise tax to increase 10% (plus inflation) on 1 Jan 2013 and repeat for the next three years (so a real 40% increase in excise tax)
  • $512 million towards new frontline education initiatives
  • $104m for housing



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