New Zealand / Politics

Finance minister cut back $20b in Covid recovery proposals

15:17 pm on 28 August 2020

Finance minister Grant Robertson cut back $20 billion worth of proposals and initiatives put forward by ministers to economise the Covid-19 Response and Recovery fund.

Finance minister Grant Robertson. Photo: RNZ /Dom Thomas

The government has released a handful of documents relating to its Covid-19 response decision making.

In a Cabinet paper dated 22 June, ministers submitted 149 proposals in total for the July 2020 round of the Covid-19 Response and Recovery Fund and to wave three of the government's response.

The proposals for wave three of the government's response to Covid-19 covered six areas - business support, energy, housing and urban development, international education, three waters and water.

That amounted to more than $23 billion of spending, but the Covid-19 Response and Recovery Fund had a remaining balance of $18bn.

However, Robertson wanted a fiscal buffer of $15bn, leaving only $3bn left for spending.

But on 20 July, the finance minister announced that the government had set aside a buffer of $14bn.

It is understood the $1bn change to the buffer was due to other costs that came up during that month, such as vaccination funding and managed isolation facilities spending.

See all RNZ coverage of Covid-19