4 Specific Fiscal Risks (continued)
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 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 2008 included $69.1 million per annum as the fourth tranche of the 10-year plan. The following table shows the additional tranches to be charged against future Budgets.
|
Budget to be charged ($million) |
2009/10 | 2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15 |
|---|---|---|---|---|---|---|
| Budget 2009 | 85.700 | 85.700 | 85.700 | 85.700 | 85.700 | 85.700 |
| Budget 2010 | - | 108.100 | 108.100 | 108.100 | 108.100 | 108.100 |
| Budget 2011 | - | - | 66.900 | 66.900 | 66.900 | 66.900 |
| Budget 2012 | - | - | - | 14.200 | 14.200 | 14.200 |
| Budget 2013 | - | - | - | - | 58.600 | 54.200 |
| Budget 2014 | - | - | - | - | - | 0.00 |
Economic Transformation: Innovation - Pre-commitment
Budget 2008 included significant funding for Economic Transformation: Innovation. In addition to this, the Government has agreed that the following funding for this purpose will be pre-committed against future Budgets.
|
Budget to be charged ($million) |
2009/10 | 2010/11 | 2011/12 | 2012/13 and outyears |
|---|---|---|---|---|
| Budget 2009 | 93.000 | 100.000 | 100.000 | 100.000 |
| Budget 2010 | - | 75.000 | 75.000 | 75.000 |
| Budget 2011 | - | - | 25.000 | 25.000 |
Foreign Affairs and Trade - Funding Package Pre-commitment
The Foreign Affairs and Trade Package is designed to provide the Ministry of Foreign Affairs and Trade (MFAT) with certainty to progress growth plans while also providing the Government and MFAT the flexibility to respond to emerging issues that may arise as a result of an increasingly complex international environment. The pre-commitment is $133 million operating and $39 million in capital funding to be allocated in Budget 2009 to Budget 2012.
| Budget to be charged ($million) |
2009/10 | 2010/11 | 2011/12 | 2012/13 |
|---|---|---|---|---|
| Budget 2009 | 8.298 | 8.035 | 8.035 | 8.035 |
| Budget 2010 | - | 13.557 | 13.369 | 13.369 |
| Budget 2011 | - | - | 18.267 | 17.68 |
| Budget 2012 | - | - | - | 24.493 |
|
Budget to be charged ($million) |
2009/10 | 2010/11 | 2011/12 | 2012/13 |
|---|---|---|---|---|
| Budget 2009 | 7.031 | - | - | - |
| Budget 2010 | - | 5.007 | - | - |
| Budget 2011 | - | - | 15.655 | - |
| Budget 2012 | - | - | - | 11.307 |
Health - Pre-commitment
The Government has agreed that the indicative Health allocation of $750 million for Budget 2009 may be pre-committed by $2.233 million in 2010/11 rising to $13.736 million per annum in 2012/13 and outyears.
|
Budget to be charged ($million) |
2009/10 | 2010/11 | 2011/12 | 2012/13 and outyears |
|---|---|---|---|---|
| Budget 2009 | - | 2.233 | 16.000 | 13.736 |
Teachers' and Principals' Collective Agreements
The Government previously set aside funding for the Teachers' and Principals' Collective Agreements in Budgets 2007 and 2008. These Collective Agreements have now been settled, and the remaining costs are $169.128 million in 2009/10 rising to $192.414 million in 2010/11 and outyears. These costs will be charged against Budget 2009.
|
Budget to be Charged ($million) |
2009/10 | 2010/11 | 2011/12 | 2012/13 and outyears |
|---|---|---|---|---|
| Budget 2009 | 169.128 | 192.414 | 192.414 | 192.414 |
