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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.

Table 5 - Changes in core Crown operating expenses
$ 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
Finance costs 0.866 1.469 1.959 2.181
Other changes 1.697 0.874 0.892 1.340
Total changes 5.860 6.673 9.433 12.258
Core Crown expenses 70.651 71.464 74.224 77.049

[1]   Excludes the impact from the tax package.

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