New Zealand unveils record spending to stop massive job losses
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New Zealand unveils record spending to stop massive job losses
New Zealand unveiled a record NZ$50 billion ($30 billion) spending package on Thursday to revive an economy hit by the coronavirus pandemic, but warned it may not be enough to stop thousands from losing jobs and businesses shutting.
The massive budget stimulus, which includes billions on infrastructure, healthcare, housing and wage subsidy schemes, sets the stage for Prime Minister Jacinda Ardern’s re-election campaign, as her centre-left government seeks to consolidate support ahead of the September poll.
Ardern said the priority was to stop massive unemployment and described the package as a “jobs” budget.
The NZ$50 billion will be spent over a four-year forecast period and is more than any New Zealand government has ever spent in one budget.
“Nothing about this time in our history is usual and so neither should our response be,” Ardern told lawmakers in a speech to parliament.
Economic forecasts released with the budget cast a grim picture for the years ahead, with unemployment seen spiking to nearly 10% by June from 4% currently.
“There will be a sharp fall in economic activity and a substantial rise in unemployment,” Finance Minister Grant Robertson said in his speech.
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