The 10 things you need to know from the 2009 Budget

Here's the 10 things I think are worth knowing from the 2009 budget. 1. Tax cuts planned for 2010 and 2011 have been delayed indefinitely. Bill English said it was unlikely they could be delivered or promised before the next election in 2011. 2. The government has suspended regular payments to the New Zealand Superannuation Fund, but has also promised to keep NZ Superannuation payments at 66% of the average wage. These two commitments are unsustainable if, as Treasury forecasts, growth remains low for years to come. 3. The budget is forecast to be in deficit until 2018/19. 4. The government's net debt is forecast to rise to a peak of 43% of GDP by 2016/17 from around 9% now 5. The Treasury's central forecast is that unemployment will peak at 8% in the second half of 2010. It's downside forecast is that it will peak at close to 10%. 6. The government has dumped the ability for those in KiwiSaver to divert savings for mortgage repayments. It says only 600 people out of the one million in the scheme had opted for the mortgage repayment diversions. 7. The government plans to spend an extra NZ$5.8 billion over the next four years on extra public services, including more prisons and prison officers, more police and more doctors. 8. The government plans to spend NZ$7.5 billion on new capital investments over the next five years, including more on roads, hospitals, schools and broadband. 9. The government plans to borrow NZ$8.5 billion in the 2009/10 year and a further NZ$26.5 billion in the following three years. That means the government will be borrowing around NZ$200 million every week for at least the next three years. By the time the budget is back in surplus in 2018/19, the government will probably have borrowed over NZ$50 billion. 10. The government plans to spend NZ$323.3 million over four years to subsidise the insulation of up to 60,500 homes each year by 2012/13. The government will pay for a third of the cost of installing ceiling and underfloor heading up to NZ$1,300 for any house built before 2000. Homes already insulated may get up to NZ$500 for clean heating. All homeowners, regardless of income, are eligible. Watch the press conference on video here.