Increasing economic growth... ...and investing the proceeds from the Government's share offers

2. Building a productive and competitive economy

Budget 2013 supports the Government's Business Growth Agenda. This focuses on the six key elements that businesses need to grow.

Budget 2013 also includes new initiatives and policies to boost economic performance:

A $100 million-a-year internationally-focused growth and innovation package that increases funding for business R&D, scientific research, tourism marketing and international education.
Expected ACC levy reductions of around $300 million in 2014/15 rising to around $1 billion from 2015/16.
Tax changes to allow loss-making start-up businesses to claim tax losses on R&D.
New housing accords that speed up the provision of new housing, in areas where it is least affordable.
New tools for the Reserve Bank to use to protect the economy and the financial system from boom and bust cycles.

Budget 2013 allocates $1.5 billion of spending from the Future Investment Fund:

$426 million to redevelop Christchurch and Burwood Hospitals.
$94 million for the fourth year of KiwiRail's turnaround plan.
$80 million to invest in irrigation infrastructure.
$50 million to speed up the School Network Upgrade Project.
Contingencies totalling over $700 million for key projects, including new, modern schools; Christchurch's justice and emergency services precinct; and Canterbury tertiary education institutes.

Across multiple Budgets the Government intends to spend:

Meridian Energy will be the next company to be prepared for a partial share offer in the second half of 2013.

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