Budget 2019 makes considerable capital investments, and uses a multi‑year capital allowance to take a longer‑term, considered approach to future spending.
In the Budget Policy Statement we signalled a move away from single-year capital allowances to a rolling multi-year capital allowance. This new approach provides flexibility to meet medium-term investment objectives while ensuring that the near-term fiscal strategy can be achieved. It also improves our ability to take a longer-term view of capital commitments and increases transparency, by tracking and reporting more clearly the cash impact of initiatives over time. This longer-term view is also supported by the establishment of a new independent infrastructure body.
- Full funding for the new Dunedin Hospital.
- $1.7 billion for the building and redevelopment of hospitals.
- $190 million for DHB deficit support.
- Taking a longer-term approach to school property, by allocating $1.2 billion for the 10-year school property programme.
Transport and Provincial Growth
- $1.4 billion for Auckland City Rail Link costs, re-scoping and cost pressures.
- Overall, $855 million has been allocated to the Provincial Growth Fund from the multi-year capital allowance.
- $741 million for KiwiRail rolling stock, ferries and business-as-usual capital needs. In addition $300 million has been allocated from the Provincial Growth Fund for regional rail investments.
- As outlined in the Government Policy Statement on Land Transport 2018, a total of $17.7 billion is to be spent on transport from the National Land Transport Fund over the forecast period.
- $1.7 billion to purchase Boeing P-8A Poseidon Maritime Patrol Aircraft.