Guide to New Zealand budgeting practices

Capital allowance

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.

Budget Allowances

Budget Allowances
$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

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