The Government will spend $2.6 billion to help households handle the increased cost of living by providing cheaper public transport, 20-hours of free childcare for two-year olds, and subsidies for insulating older houses. Budget 2023 includes $4.8 billion of new annual spending, with almost 80% of that figure absorbed by cost pressures in existing services — largely due to inflation. Transport Minister Michael Wood said everyone in New Zealand will benefit from the policy, either through improved access to public transport or reduced congestion on roads. For example, the cheaper public transport fares help households cope with the cost of living while also incentivising uptake of the cleaner mode of transit. Budget 2023 has allocated $10.7 billion of capital spending on a range of infrastructure projects.

Source: New Zealand Herald May 18, 2023 03:38 UTC