Key cuts and spending by
policy area
Education
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Cuts and revenue
- Moving fees-free year to the final year of study will save $877 million over the next four years
- Job cuts will save $150 million over the next four years
- Cuts in consultants and contractors will save $61.5 million over the next four years
- $5 million will be cut from funding for non-essential Ministry of Education staff travel
- $43.9 million for professional services has also been cut
- 755 positions across the Education Ministry set to be cut, of which 316 were vacant. 35 will lose their jobs at the NZQA
- 35 will lose their jobs at the NZQA
New spending
- $1.48 billion to build new schools and classrooms and to maintain and upgrade existing ones
- $153 million in new funding over four years for up to 50 charter schools
- $478 million for a revamped school lunches programme
- $53 million over four years to help boost teacher numbers by 1,500
- $67 million for structured literacy, $723 million for ECE rebates
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Health
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Cuts and revenue
- Ministry of Health is set to save $12.6 million this year by cutting jobs and the use of contractors
- Ministry of Health has proposed cutting 134 jobs
- Another $31.5 million will be saved from the disestablishment of the Māori Health Authority Te Aka Whai Ora
- Reinstating $5 prescription charges for those 14 and over will save just under $71m
New spending
- $1.77 billion for Pharmac
- $3.44 billion for hospital and specialty services
- $2.12 billion for primary care and public health
- $31.2 million to gradually extend free breast screening to 70-74-year-olds
- $24 million over four years for mental health initiative Gumboot Friday
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Infrastructure
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Cuts and revenue
- 121 jobs to go from Waka Kotahi and 24 from the Ministry of Transport
New spending
- $4.1 billion of Crown funding for the National Land Transport Fund to accelerate priority projects including the Roads of National Significance
- More than $1 billion for rebuild post-cyclone and Auckland floods, includes $939.3 million to repair roads
- $1.2 billion for the new Regional Infrastructure Fund to invest in resilience infrastructure
- $200 million to support KiwiRail to carry out maintenance and renewals on the national rail network
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Law and order
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Cuts and revenue
- 107 vacant positions have been eliminated (but no redundancies)
New spending
- $1.94 billion for more frontline corrections officers, more support for offenders to turn away from crime and more prison capacity, including an expansion of Waikeria prison
- $424.9 million to support frontline policing
- $68.7 million to address youth offending, including a military-style academy pilot
- $226.1 million for an extra 500 police officers and additional operational support staff
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Housing
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Cuts and revenue
- Ministry of Housing cut $391 million from its spending. This includes cutting the First Home Grant - saving $245 million over four years
- 30 people would lose their jobs from Ministry of Housing and Urban Development and 159 from Kāinga Ora
New spending
- $140 million for an extra 1,500 social housing places
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Defence
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Cuts and revenue
New spending
- $570.7 million for Defence Force pay and projects, including upgrading vehicles, helicopters and infrastructure
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Foreign affairs
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Cuts and revenue
- $15 million a year in cuts via back-office savings
New spending
- $60 million towards renewing New Zealand’s diplomatic infrastructure in the Pacific
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Social investment
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Cuts and revenue
New spending
- $1.1 billion to ensure disabled people can access the essential services, equipment or support they need.
- $48.7 million to support the Te Matatini national festival and bring kapa haka to life in the regions
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Science
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Cuts and revenue
- Discontinuation of National Science Challenges, saving $68 million annually
New spending
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Climate
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Cuts and revenue
- Discontinuation of some policies on electric vehicles
New spending
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