Finance Minister Grant Robertson's 2021 Budget includes $57.3 billion in infrastructure spending between 2021 to 2025, increasing what was already a large increase in the 2020 Budget. Treasury predicts unemployment will fall to 4.2 per cent by 2025, only marginally above what it was before Covid-19. A stronger overall economy means that while spending climbs, the forecasts are stronger than in the last update in December. Toplis said as well as suggesting growth could ultimately be lower than expected, low unemployment tended to mean inflation would be higher. Brad Olsen, a senior economists at Infometrics, said the Budget showed spending restraint.

Source: New Zealand Herald May 20, 2021 02:06 UTC