2006 New Zealand budget

The New Zealand budget for fiscal year 2006–2007 was presented to the New Zealand House of Representatives by Finance Minister Dr Michael Cullen on 18 May 2006.

2006 (2006) New Zealand budget
Submitted byMichael Cullen
ParliamentParliament of New Zealand
PartyLabour
Total revenue$47.4 billion[1]
Total expenditures$42.1 billion[1]
Surplus$4.2 billion[1]
Debt$10 billion (Net)[2]
5.8% (Net debt to GDP)[3]
Websitehttp://www.treasury.govt.nz/budget/2006
ǂNumbers in italics are projections.
‹ 2005
2007 ›

This was the seventh budget Michael Cullen has presented as Minister of Finance.

The budget allocated an operating spending of $6 billion and capital of $2.7 billion over the preceding four years.

Outline

Key issues in the budget includes:

  • The Telecom New Zealand local loop unbundling.
  • $1.3 billion extra for transport.
  • $3 billion extra for health care, over the next four years.
  • $361 million extra for schooling.
  • $166 million extra for tertiary education and skill training.
  • $162 million extra for early childhood education.
  • While there was some lobbying for tax cuts, none were delivered.
  • $8.5 billion OBERAC surplus; $1.5 billion cash surplus

Reception

Cullen's guiding principle was, he stated, "The fool who spends on the upturn will find himself broke on the downturn".[4]

It has been labelled as the "Bondi Budget" by National party leader Dr Don Brash. Brash stated "Helen Clark and Michael Cullen believe there is a place for tax cuts – it's called Australia".[5]

References
  1. "Minister's Executive Summary" (PDF). New Zealand Treasury. 18 May 2006. Archived from the original (PDF) on 16 February 2016. Retrieved 20 March 2015.
  2. "Fiscal Strategy Report – Budget 2006" (PDF). New Zealand Treasury. 18 May 2006. Archived from the original (PDF) on 18 January 2015. Retrieved 2 April 2015.
  3. "Fiscal Strategy Report, Budget 2006" (PDF). New Zealand Treasury. 18 May 2006. Archived from the original (PDF) on 16 February 2016. Retrieved 2 April 2015.
  4. "Government announces $1.3b boost for transport". New Zealand Herald. 18 May 2006. Retrieved 20 March 2015.
  5. "Bondi Budget bad for New Zealand" (Press release). Archived from the original on 6 October 2014. Retrieved 30 September 2014.
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