The Labour government’s 2019 “wellbeing budget” received much acclaim around the world. It sought to change how government spending was considered. Rather than focus on facts and figures like GDP, it opted to measure its success in terms of social outcomes like safety, human health and flourishing. A living standards framework was developed to track these areas with hopes it would lead to a positive change in how the policy would be reshaped and the setting of spending priorities.
This year, however, the tune has changed. In what can be hoped to be the aftermath of the Covid pandemic, the government is switching gears and focusing on recovery. NZ Finance Minister, Grant Robertson, has now indicated that the budget 2021 will emphasise investment and careful fiscal management.
In a pre-budget speech to the Wellington Chamber of Commerce this week, Robertson stated that the 2021 Budget would be a “recovery budget”. He further referenced GDP, unemployment, and reducing government debt. While not quite intending to undertake austerity measures, Robertson did stress a need for fiscal caution.
The government wound up spending $926 million less than budgeted for on Covid relief. These funds are now going to be redirected towards recovery efforts. In the new budget that will be supplemented by this almost $1 billion bonus, Robertson expects to continue keeping New Zealanders safe from Covid-19, while seeking to accelerate economic recovery and address the key challenges of climate change, housing affordability, and child wellbeing.
Robertson added that he was tasked by PM Jacinda Ardern to head a new unit in her department that would ensure delivery on the government’s promises on mental health, climate change, infrastructure and housing. This new implementation unit would monitor spending and implementation by government departments at a time when some high profile projects like the “KiwiBuild” initiative and Auckland’s light rail have struggled to produce results.
This move has however attracted some criticism as pundits question the need for such a unit when the government itself is meant to be an implementation unit. It has also raised some queries as to whether this means that government projects lack monitoring and support already. Robertson has however argued that the focus will be on those projects that have multiple agencies collaborating. There however remains some confusion as to whether this new unit will serve to promote harmony or act as a disciplinarian in pushing these agencies to deliver as expected.
This new responsibility for Robertson adds powers beyond his finance ministerial role, making him the informal Minister for Delivery. The Department of Prime Minister and Cabinet has already put out a job advertisement for someone to head up this small team.