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English signals tough 2010 budget after five year spending splurge (Update 2)
November 26th, 2009Finance Minister Bill English has set the scene for a tough 2010 Budget by detailing “rampant” government spending growth over the last five years that is “unsustainable and cannot continue”. Government spending grew three times faster than the rest of the economy in the last five years, English said. (Update 2 includes video from Bill English)
“Baseline Budget spending has jumped 45% since 2005 – at a time when inflation and the economy only grew by about 15%,” English said a month out from the government’s Half Year Economic and Fiscal Update (HEFU).
“More than a third of all Budget vote areas received funding increases of over 50% in the past five years and over two thirds received increases of more than 30%,” English said.
English is right in the middle of setting budget targets for ministries and compiling the details of the 2010 budget due in May. He will have already seen the early drafts of the HEFU. The 2010 budget is the last before the election year budget of 2011.
Here is the full release from English below and a short video from English:
The Government’s Half-Year Economic and Fiscal Update next month will highlight the legacy of Labour’s relentless spending increases over recent years, Finance Minister Bill English says.
Mr English today confirmed the half-year update, along with the 2010 Budget Policy Statement, will be released on December 15.
“Baseline Budget spending has jumped 45 per cent since 2005 – at a time when inflation and the economy only grew by about 15 per cent.
“More than a third of all Budget vote areas received funding increases of over 50 per cent in the past five years and over two thirds received increases of more than 30 per cent.
“This kind of rampant spending growth is unsustainable and cannot continue.”
The fiscal update would also confirm the impact of the recession would be felt on the Government’s books for many years, Mr English says.
“On behalf of taxpayers, we are already borrowing an average $250 million a week, every week, over the next four years to ensure we can continue providing public services and maintain welfare entitlements.
“The baseline Budget figures for the past five years, which exclude direct payments like benefits or Working for Families, show the scale of the spending momentum built up under Labour. That will take time to turn around.
“No business or household can continue operating this way – and nor can the Government. That’s why this Government is taking steps to slow future spending increases and get debt under control.
“If we are to fund new priorities without pushing Government debt to unsustainable levels, then finding savings in existing spending will be critical.
“We believe these large recent spending increases provide ample room for reprioritisation. This will be a feature of Budget 2010 as the Government delivers its priorities within the $1.1 billion cap it has set out for new operating spending,” Mr English says.
Examples of baseline spending increases over the past five years include:
- Education: from $7.7 billion in 2004/05 to $10.7 billion in 2009/10 – an increase of 39 per cent.
- Health: from $9.3 billion in 2004/05 to $12.6 billion in 2009/10 – an increase of 35 per cent.
- Corrections: from $538 million in 2004/2005 to $1.07 billion in 2009/10 – an increase of 98 per cent.
- Police: from $942 million in 2004/2005 to $1.39 billion in 2009/10 – an increase of 48 per cent.
- Housing: from $40 million in 2004/05 to $134 million in 2009/10 – an increase of 234 per cent.
Tags: bill english, Budget 2010, Labour, National
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November 26th, 2009 at 12:16 pm
The first cut I would make would be his salary and all expenses, past and present.
An Englishman’s word is not his bond. (if you will excuse the expression, being a POM).
Unfortunately it is the taxpayers.
November 26th, 2009 at 12:34 pm
Cut Billy some slack. Gotta pay for all those LAQC & WFF payments by making some cuts somewhere, & frivolous things like health & education are the obvious targets to pay for middle class welfare…………
November 26th, 2009 at 12:38 pm
Housing (DHB) expenditure up 234%!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
November 26th, 2009 at 12:41 pm
Billy liar is the problem, not the solution. We cannot afford him and his ilk.
The cost of doing business with them is way too much.
November 26th, 2009 at 12:54 pm
Haaaaaaaaaarhaaaahaaha…racing raced ahead of the rest.
November 26th, 2009 at 1:14 pm
How about a comparison detailing “rampant” government spending growth over just the last year (where Bill and John have been in charge)? There are some impressive spending growth increases.
National had the opportunity to act decisively, and then blame the need to do so on the previous government. That was early in their administration, but they squandered the opportunity borrowing to maintain entitlements.
JK and BE are now the problem – trying to separate earlier stupidity from their own doesn’t really work.
November 26th, 2009 at 1:16 pm
Wow. I didn’t realise how much was spent on Health and Education. I’m sure glad those haven’t ballooned out as much as the others on the list!
November 26th, 2009 at 1:30 pm
So does that mean there was zero economic growth over the period – or that inflation growth was 15% and economic growth 15% – so total of 30% to compare to 45% growth in expenditure
November 26th, 2009 at 2:11 pm
248million on energy, and i thought my powerbill was high!
November 26th, 2009 at 3:20 pm
Who or What do we ‘officially develop’ to the tune of half a billion????
November 26th, 2009 at 3:53 pm
A quick glance .. some comments
Defence $10m – Defence Force $2b; What’s the difference here?
Woman’s affairs (50% of population) $4.7m – Men $0.
Racing??!!?! Are they freakin serious? Bill, cut it .. !!!
Courts / Justice .. why split these items out, difference?
Climate change $500m .. Useless waste of money. Cut it.
Health – 35% increase and service is getting worse !! No improvement – no increase.
Labour/Employment ?? Difference??
There were a couple more, but why not combine similar portfolios to avoid duplication!?!
November 26th, 2009 at 5:14 pm
Bevan Says:
“Wow. I didn’t realise how much was spent on Health and Education.”
Well it hasnt realy…it has been spent on bloating and waste….
and STILL is
I have a quote in at the moment for a school….upgrade all the switches to 1gig at over $1200 a peice….the network usage at peak times is 30 meg….which is a $40 switch.
The sales justification is “3 years out of date”
Or put it another way, do you replace the car you do your shopping at the local supermarket, because the new model has has a Nav Man?
Why should the tax payer have to fork out 40 odd grand, when well under 7K will see the next 3 to 5 yrs out fine?
Communications: they have spent millions to give me (my home connection) a download speed of 17.6 meg…..why? my old 8 meg was fine…hey even my old 6.2meg was.
I can go on and on with REAL examples covering the last 10 yrs or so in the education and communications sectors….
November 26th, 2009 at 7:21 pm
Can anyone tell me if your daily life would have to change drastically if we were to go back to 2004/5 services we had back then?
Were you making a reasonable living and got on ok? If the answer is yes, then the question being raised is:
Why couldn’t we reduce back to 2004/5 levels overall next year for a start? (if you are generous, you’ll allow for the ‘official’ CPI adjustment up over that period of time)…
Work out what that would mean for the govnt finances and what that could do our ability to pay off debt!
November 26th, 2009 at 7:44 pm
ctnz : further , my friend . Chug back to 1999 . Are our lives improved by anything that Clark and Cullen did , in the increased government spending arena ? They massively ramped up ACC’s sphere , WINZ’s power with WFF , introduced interest-free-loan for students , yadda , yadda . They saddled us , the tax-payer , with an increased annual obligation to some anonymous ” they ” , who are the recipients of Labour’s largesse . Is the productive economy , the businesses/ farmers/ workers any better off from these spending sprees ?
November 26th, 2009 at 9:24 pm
But why stop there?
Keith Holyoake really had things running smooth in the ’60’s… we were all in the bush knocking off boars with a finder/bailer and a short handle slasher.
Honestly, thanks to Muldoon and Think Big…. we’ve been screwed ever since!
November 28th, 2009 at 8:36 am
English is the problem, not the solution.
We are paying again for his misdeeds, no doubt..
http://www.stuff.co.nz/national/politics/3105011/Bill-Englishs-convoy-flouts-law
November 28th, 2009 at 9:13 am
Like HELL-en, no rule of LAW for them.
And that is the mentality we have to CHANGE.
November 28th, 2009 at 9:24 am
Silly Bill English now blaming his drivers for parking on yellow lines and across a mobility area.Why could they not have dropped him off and gone and found a legal park? The reason is straight out arrogance. Who does he think he is, a bloody rock star? And to think I voted National last time! I must be as silly as Billy. Mind you though, Clark and her 170Km speed trip rates up there too. “I reading papers” Drivers went to court for a show pony trial and then got the charges dismissed Do any of them take any responsibility for any thing?
November 28th, 2009 at 9:42 am
Bloody shame he wasn’t getting a haricut at Sweeney Todd’s. Real English Sausages!
November 28th, 2009 at 10:24 am
It will definitely be tough for him, without extra $800/week, to live in his home…
November 28th, 2009 at 10:40 am
…a ‘haricut’..haaarhahaa…too early in the morning to edit
November 28th, 2009 at 10:55 am
ctnz…that’ll be the foreign aid given to develop the armed forces in Fiji.
November 28th, 2009 at 12:12 pm
Never have so many owed so much to even more. To steal and paraphrase, so to speak from WINNIE and no not Winnie the Poo-dle.
Tis their RIGHT to steal and ignore the rule of LAW at OUR…..DAMN EXPENSE, cos we will PAY, for this and his other RORTS of law.
Rank arrogance, rank rort, and rank HAIRCUT.
Perhaps he needs to be taken down a RANK.
These people make me so SORE, I could vote with my FEET, never mind NATIONAL.
The MANTRA remains the same as does the shouting.
THESE PEOPLE ARE THE PROBLEM, NOT THE SOLUTION!!.