Guide to New Zealand budgeting practices
Capital allowance
The rolling multi-year capital allowance was introduced in Budget 2019 and uses a four-year total funding envelope, rather than a single-year allowance. This approach aims to provide flexibility to meet medium-term investment objectives.
Budget Allowances
Operating Allowances
| $billions | Budget 2024 | Budget 2025 | Budget 2026 | Budget 2027 |
|---|---|---|---|---|
| Operating allowances at the Half Year Economic and Fiscal Update 2023 (per annum) | 3.5 | 3.25 | 3.0 | 3.0 |
| Operating allowances set at Budget 2024 (per annum) | 3.2 | 2.4 | 2.4 | 2.4 |
Multi-Year Capital Allowances Allowances
| $billions | Budget 2024 | Budget 2025 | Budget 2026 | Budget 2027 |
|---|---|---|---|---|
| Multi-Year Capital Allowance at Half year Economic and Fiscal Update 2023 | ← 2.9 → | |||
| Multi-Year Capital Allowance top up announced in the Budget Policy Statement 2024 | 7.0 | |||
| Budget 2024 Capital package | 7.0 | |||
| Unallocated capital allowance | ← 7.5 → | |||