Budget 2021 was all about big spending on benefits, health and infrastructure. With some critics saying the Government was spending too little and others saying it was racking up too much debt, Finance Minister Grant Robertson aimed to find a balance between the two.
Not much for businesses
For most Kiwi business owners, there were no substantial new initiatives. The tourism industry will receive another $200 million from the Covid-19 fund, while another $44 million has been earmarked for digital training programmes for small businesses.
A new social unemployment insurance scheme will go into development, which would support those who have lost their jobs. This is several years away, but may lead to higher costs for businesses.
Budget spending is likely to boost the economy
Increases to benefits and massive investment in infrastructure are both likely to stimulate the economy significantly over the next few years. This is great news for the construction sector, and the health and education sectors will be getting some major new assets.
Questions about how the Budget impacts your business?
If your business is in the tourism, construction, health or education sector, you may be on the cusp of rapid growth in your industry. We can help you position yourself to make the most of it, so give us a call or send us an email and let’s talk.