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 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.
| Year ended 30 June $billions |
2012 Forecast | 2013 Forecast | 2014 Forecast | 2015 Forecast | 2016 Forecast |
|---|---|---|---|---|---|
Movements in expenditure |
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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% |
