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Budget 2008: Fair economy, strong future

Budget 2008 is a fair and responsible budget which helps individuals and families, keeps our economy strong, and invests in the future.

Associated articles

In the budget we're making sure that all Kiwi taxpayers, including superannuitants, benefit from tax cuts on October 1, 2008. These tax cuts will help meet at least some of the increased costs of living which I know are putting a lot of pressure on household budgets.

We've been careful to make sure the tax cuts don’t come at the expense of public services like education and health, or investment in the future such as rebuilding rail and faster broadband internet.

I believe the tax cuts are affordable and responsible because Labour has been a careful manager of the economy over the past 8 ½ years. And to avoid putting pressure on mortgage interest rates we’re introducing them between October of 2008 and April of 2011.

We also keep on investing in programmes which reduce costs to families – like affordable doctor’s fees, lower prescription charges and 20 Hours Free early childhood education. And we can step up our major investment in the Working for Families tax credits.

The following is a summary of major announcements in the budget. You can find more information on the Labour.org.nz website.

Helen Clark

Prime Minister

Personal tax

From 1 October cuts to personal tax will help individuals and families meet at least some of the increased costs of living. Further cuts to personal tax will happen in 2010 and 2011.

Transforming our economy

This year’s Budget includes a major investment that will mean $500 million is spent over the next five years in developing a truly competitive, world-class broadband network in New Zealand. It also funds the largest ever public investment in science and research and a major step forward in boosting the skills of our workforce through a programme which the business community, workers and government will progress together.

Health

Budget 2008 invests $750 million in health care for all New Zealanders: future proofing services, driving for quality, investing upstream in primary and public health, and focussing on children and youth – where early intervention counts the most.

Transport

Budget 2008 builds on the Labour-led government’s record investment in transport, with more funding for road, rail, air and public transport. Highlights include new funding for projects in Canterbury, Northland and Tairawhiti.

Education

The Labour-led government believes that investing in young kiwis is the best way to secure opportunity and prosperity in the future. That’s why in Budget 2008 we are increasing operating grants to schools, investing in 762 more teachers, 9 new schools, smaller class sizes, more technology, 130 new classrooms, and more.

Older Kiwis

Budget 2008 continues this government’s record investment to support older New Zealanders from Superannuation levels, rates rebates, increased carer support and community services, to free off peak travel. And superannuitants also benefit from personal tax cuts in the budget.

Modern justice

Budget 2008 Budget focuses on strengthening the justice system and ensure that New Zealanders live in safe and responsive communities. Funding includes more resourcing for the Police Force and investment in Auckland’s courts system.

Housing

Living in decent, affordable housing is fundamental to the health and well‑being of families and communities. Budget 2008 provides funding for building new, affordable homes, funding for a new Shared Equity Scheme, and the insulation of all state owned houses to make them warmer, healthier and more energy efficient.

Students

Budget 2008 brings more student allowances, more scholarships and more loan support to students. The Labour-led government is continuing our commitment to help ease the burden on students as you invest in the knowledge and skills to drive New Zealand forward.

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