Expenditure growth in 2010/11
Table 5 analyses growth in core Crown operating expenses over the forecast period. Forecast expenditure of $70.7 billion in 2010/11 represents a substantial lift from the previous year.
This is because the new spending allowance does not cover all expenditure. Demand-driven items, such as benefit and New Zealand Superannuation payments and finance costs, are not subject to the spending allowance.
This is apparent in Table 5. In 2010/11 core Crown expenditure will increase by $5.9 billion. The new spending allowance, the composition of which was detailed in Table 2, is only one component of this. In 2010/11 items outside the new spending allowance make up the majority of the spending increase.
|$ billion, June years||2011||2012||2013||2014|
|Core Crown expenses (year ended 30 June 2010)||64.791||64.791||64.791||64.791|
|Impact of Budget 2010 decisions||1.212||1.124||1.101||1.100|
|Forecast new spending for Budget 2011||-||1.122||1.122||1.122|
|Forecast new spending for Budget 2012||-||-||1.146||1.146|
|Forecast new spending for Budget 2013||-||-||-||1.167|
|Contingency for weathertight homes||-||0.060||0.195||0.395|
|Impact of tax package on expenses||0.179||0.104||0.080||0.096|
|New Zealand Superannuation payments1||0.493||1.053||1.455||1.897|
|Other benefit payments1||0.506||0.592||0.902||1.087|
|Emissions Trading Scheme||0.907||0.275||0.581||0.727|
|Core Crown expenses||70.651||71.464||74.224||77.049|
 Excludes the impact from the tax package.