The Treasury

Global Navigation

Personal tools

Budget 2012 at a glance

Expenses

Social security and welfare, health and education costs will make up over two-thirds of core Crown expenses in Budget 2012.

Core Crown expenses, 2012/13 ($73.7 billion)
Core Crown expenses, 2012/13 ($73.7 billion).

Core Crown expenses will increase in 2012/13 over the previous year, reflecting higher superannuation and finance costs and a transfer of earthquake costs from the previous year.

However, expenses fall in 2013/14 and core Crown expenses as a percentage of GDP start falling after 2012/13.

Cumulative growth in core Crown expenses
Year ended 30 June
$billions		 2012 Forecast 2013 Forecast 2014 Forecast 2015 Forecast 2016 Forecast

Movements in expenditure

          

New spending

          
Budget 2011 decisions 0.4 (0.1) (0.4) (0.3) (0.3)
Budget 2012 decisions (0.7) 0.5 0.6 0.4 0.6
Budget 2013 allowance - - 0.8 0.8 0.8
Budget 2014 allowance - - - 1.2 1.2
Budget 2015 allowance - - - - 1.2

Forecast changes

          
Increase in New Zealand Superannuation costs 0.8 1.4 2.0 2.8 3.5
Increase in other social assistance (0.1) - (0.1) (0.1) 0.1
Emissions Trading Scheme (0.2) (0.6) (0.6) (0.4) (0.2)
Debt impairments 0.2 0.5 0.6 0.4 0.5

Other movements

          
Finance costs 0.5 0.7 0.9 1.2 1.2
Weathertight homes (0.8) (0.6) (0.6) (0.6) (0.6)
Earthquake expenses (0.9) 0.6 (1.2) (1.4) (1.5)
Other movements (0.1) 0.8 0.4 0.4 0.3
Increase in core Crown expenses (0.9) 3.2 2.4 4.4 6.8
Baseline expenses (June 2011) 70.5 70.5 70.5 70.5 70.5

Core Crown expenses

 69.6 73.7 72.9 74.9 77.3

Core Crown expenses as a % of GDP

 33.5% 33.8% 31.5% 30.7% 30.2%
Page top