Charges against Future Budgets
As part of its Budget strategy, the Government has put in place some longer-term funding paths for particular sectors. This aids long-term planning and demonstrates the Government’s commitment to specific policies.
Charges against future Budgets do not meet the definition of a “risk” under the PFA, as these items are incorporated in the fiscal forecasts. This section is provided to increase transparency about the provisions for future Budgets.
Defence Funding Package
The Defence Funding Package (DFP) is designed to provide the New Zealand Defence Force (NZDF) with the funding required to address issues identified by the Defence Capability and Resourcing Review, including capability, and maintaining equipment and reserves. Budget 2005 included $60 million per annum as the first tranche of the 10-year plan. The following table shows the additional tranches as charged against future Budgets.
|
Budget to be Charged ($m) |
06/07 | 07/08 | 08/09 | 09/10 | 10/11 | 11/12 | 12/13 | 13/14 | 14/15 |
|---|---|---|---|---|---|---|---|---|---|
| Budget 2006 | 72.6 | 72.6 | 72.6 | 72.6 | 72.6 | 72.6 | 72.6 | 72.6 | 72.6 |
| Budget 2007 | 58.0 | 58.0 | 58.0 | 58.0 | 58.0 | 58.0 | 58.0 | 58.0 | |
| Budget 2008 | 69.1 | 69.1 | 69.1 | 69.1 | 69.1 | 69.1 | 69.1 | ||
| Budget 2009 | 85.7 | 85.7 | 85.7 | 85.7 | 85.7 | 85.7 | |||
| Budget 2010 | 108.1 | 108.1 | 108.1 | 108.1 | 108.1 | ||||
| Budget 2011 | 66.9 | 66.9 | 66.9 | 66.9 | |||||
| Budget 2012 | 14.2 | 14.2 | 14.2 | ||||||
| Budget 2013 | 58.6 | 54.2 | |||||||
| Budget 2014 | 0 |
Health Funding Package
In Budget 2005, the health sector received $475 million per annum as the third tranche of the Health Funding Package (HFP). A fourth tranche of $489 million per annum is charged against Budget 2006.
| Budget to be Charged ($million) | 2006/07 | 2007/08 | 2008/09 | 2009/10 and Outyears |
|---|---|---|---|---|
| Budget 2006 | 489 | 489 | 489 | 489 |
Official Development Assistance
The Government has committed to an Official Development Assistance to Gross National Income ratio (ODA:GNI ratio) of 0.27% for the fiscal years 2005/06 and 2006/07 and increasing this to 0.28% in 2007/08. Budget 2005 included funding for 2005/06 levels only. The 0.27% in 2006/07 is expected to cost an additional $19 million per annum to be charged against Budget 2006, and the 0.28% in 2007/08 is expected to cost $38 million to be charged against Budget 2007.
| Budget to be Charged ($million) | 2006/07 | 2007/08 | 2008/09 | 2009/10 and Outyears |
|---|---|---|---|---|
| Budget 2006 | 19 | 19 | 19 | 19 |
| Budget 2007 | 38 | 38 | 38 |
Tertiary Student Component Funding Rate Changes (The rolling funding triennium and fee and course cost maxima)
The Government has a policy of increasing Student Component funding rates for tertiary education by the rate of forecast CPI inflation on a rolling triennium. Funding is appropriated for future years at the rate of the CPI forecast plus 1%, and in the Budget preceding the relevant academic year funding rates are confirmed using a more up-to-date CPI forecast. The differential between the CPI increase and the appropriation is retained within the Vote for application elsewhere in the Student Component.
| Budget to be Charged ($million) | 2006/07 | 2007/08 | 2008/09 | 2009/10 and Outyears |
|---|---|---|---|---|
| Budget 2006 | 29.1 | 59.2 | 59.2 | 59.2 |
| Budget 2007 | 28.5 | 57.0 | 57.0 |
Transport Capital Decisions
The Government has made several long term capital commitments relating to Transport. This table notes the implications for the capital allowances beyond the forecast period.
| Transport Project | 2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 |
|---|---|---|---|---|---|---|
| Auckland | 100.0 | 100.0 | 100.0 | 100.0 | - | - |
| Wellington | 20.0 | 20.0 | 20.0 | 20.0 | 20.0 | - |
| Western Corridor | 120.0 | 120.0 | 100.0 | 40.0 | 40.0 | 20.0 |
| Bay of Plenty | 25.0 | 25.0 | 15.0 | 10.0 | 10.0 | - |
