May 28's budget will result in cuts to planned increases in
expenditure in a number of areas, including tertiary
education, Finance Minister Bill English said today.
Mr English accused the previous Labour government of "booking
up" increases in future budgets that could not be funded and
had had no money set aside for them.
This included a $200 million a year economic transformation
package and more money for tertiary institutions planned to
start in a few years' time.
Those spending promises would be weighed up against pressure
on the probation and corrections service, Mr English said.
Most of the cuts to planned increases would affect budgets
two or three years away.
"It will mean that some people won't get some of the things
they might have been expecting, but equally no one will lose
anything they already have." He also indicated there would be
money for the national cycle way promoted by Prime Minister
John Key.
In the past Mr English has poured cold water over the idea of
spending large amounts of money on the cycle way, but today
he said: "The prime minister in the next few days will be
showing exactly who is boss".
Contractually agreed increases such as the $190 million for
teachers' pay rises would be funded.
The Australian budget was delivered yesterday with plans to
shield jobs from the global downturn through wide-ranging
infrastructure spending that would plunge Australia into
record debt.
Treasurer Wayne Swan revealed his budget for the next fiscal
year beginning July 1 that would create a record $A58 billion
($NZ74.33 billion) deficit -- equivalent to 4.9 percent of
gross domestic product.
Mr English said the Australian Government was also increasing
pension payments significantly and to offset that was raising
the age of entitlement.
"We are not raising the pension significantly and so we
haven't contemplated raising the age at all." There would be
no changes to superannuation arrangements in his budgets.
Australia had turned from surpluses into deficits over six
months, whereas New Zealand had been going through that
process over the past six months, he said.
