Guide to New Zealand budgeting practices
The rolling multi-year capital allowance was introduced in Budget 2019 and uses a four-year funding envelope, rather than a single-year allowance. This approach provides flexibility to meet medium-term investment objectives while ensuring the near-term fiscal strategy can be achieved. It improves our ability to take a longer-term view of capital commitments and also increases transparency, by tracking and reporting more clearly the cash impact of initiatives over time.
|$billions||Budget 2022||Budget 2023||Budget 2024||Budget 2025|
|Operating allowances at 2022 BPS (per year)||6.0||4.0||3.0||3.0|
|Operating allowances at Budget 2022 (per year, before pre-commitments)||5.9||4.5||3.0||3.0|
|Multi-year capital allowance at 2022 BPS||← 9.8 →|
|Multi-year capital allowance at Budget 2022||4.7||← 5.1 →|
Source: The Treasury