In the Budget Policy Statement, a document outlining next year’s budget priorities released on Wednesday, Finance Minister Grant Robertson announced new spending, particularly on health and climate change
He said that the Government’s overall goals for Budget 2022 will be keeping New Zealand safe from Covid-19, accelerating the recovery and rebuild from Covid-19, and laying the foundations for the future including climate change, housing affordability and child poverty.
An extra $6 billion will be spent on health reform and meeting climate goals.
The overhaul of the health sector, announced by Health Minister Andrew Little earlier this year, will see 20 district health boards merged into one mega health service, Health NZ, which will be divided into four regions, alongside a newly-formed Māori Health Authority with as yet unspecified scope and powers.
A new Climate Emergency Response Fund (CERF) will focus on initiatives that help us meet our climate change objectives. Government will be announcing a new “Emissions Reduction Plan” alongside the 2022 Budget which will lay out how emissions will be cut across the economy. Proceeds from the Emissions Trading Scheme will be set aside for climate-related purposes.
Climate Change Minister James Shaw said, “The CERF is a game-changer that will provide billions of dollars over the next four years to help meet our Government’s climate goals. It has been made possible only because of the changes we made to the ETS that now means our largest polluters are finally paying a proper price for their climate pollution.”
The announcements were made in a setting that shows improved revenue from taxes, low levels of unemployment and stronger economic growth than had been expected.
Overall, government spending in 2022 is forecast to be a touch under $52 billion higher per year than in 2017.
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