The Government’s pre-budget policy statement for 2018

Dec 18, 2017 | Documents

The overall size of the economy, nominal GDP, is forecast to be cumulatively $1.5 Billion higher than in the Pre-election Economic and Fiscal Update (Pre-election Update) over the four years to 2020/21. This, along with policy changes in the 100-Day Plan, flows through to a $6.6 billion higher tax take over the four year forecast horizon to 2020/21 compared with the Pre-election Update. The majority of this revenue increase is driven by the reversal of the previous Government’s package of tax cuts, which will free up around $8.4 billion over the five years to 2021/22.

This additional revenue will be invested into families to reduce child poverty and improve incomes under the Families Package and it will allow the Government to invest in other priority areas, including housing, health and education.

The Families Package will deliver more money to families with children and help reduce child poverty. On housing the document, largely a fiscal strategy, highlights the following for housing:

“This Government has an ambitious programme for housing. The establishment of KiwiBuild as part of the 100-Day Plan will be added to by significant boosts to social housing, improvements in rental housing standards, policies to reduce homelessness and innovative approaches to unblock barriers to sustainable urban development.”

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