How NZ will spend its way out of the COVID crisis with $50 billion

15 May 2020

Yesterday was a big day for New Zealand. Not only did it mark the coming out of Lockdown for the nation, as we moved into Level 2, but the government announced the much anticipated Budget 2020 (aka "Wellbeing Budget 2020: Rebuilding Together).

As the impact of coronavirus unleashes on our economy, as well as all across the globe, tens of thousands of jobs are at risk and as many businesses are facing an uphill battle to stay open. It is stating the obvious to say that New Zealand's economy is facing some hard days ahead and it will take an enormous effort from both the public and private sector to keep people employed and businesses operating. 

The Finance Minister, Grant Robertson, on behalf of the government, has stepped up to the play with the announcement of a $50B COVID-19 Response and Recovery Fund (CRRF) to help rebuild society and the economy. It is expected that this fund will keep the lights on when it comes to important public services and to continue supporting infrastructure investment that will create many jobs for New Zealanders. 

Let us take a look at where the government is placing its biggest bets:

  • $14B on wage subsidies

  • $6.3B for Health

  • $3.2B additional in follow on wage subsidies

  • $1.8B for Defence

  • $1.6B on trades and apprenticeships

  • $1.1B to create "green jobs"

  • $1B to improve transport

  • $1B for Education

  • $900M to support Maori

  • $833 additional support for disability support services

  • $400M towards employment support through MSD

  • $400M for the tourism sector

  • $280M for postal services

  • $220M on school lunches

Budgeting is especially important for New Zealand right now. It helps us to work out where money is going to be spend and to consider what will it provide in return for the country. It also helps the government understand how much money it will need to have in order to spend this money. 

Likewise, for our personal finances it is important to have an idea of where our money is going and what we are getting in return for it. One area of spending that many of us have little visibility of is our insurance! How much are you spending on your insurance?

Many Kiwis bought insurance years ago and have not touched it since. Only hoping that it will save the day when misfortune strikes. Let's not take that risk!

Bring all your insurance together in one place and find out how you're protecting the things that matter to you and how much you're spending.

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