Budget 2024 adds to existing infrastructure announcements to boost networks

Budget 2024 contains new money for infrastructure despite concerns about holding the financial line in a world with deficits forecast for at least three more years. 

The Budget includes an extra $1 billion for transport, and $1.48 billion for school and kura buildings. 

“The Government is determined to address New Zealand’s infrastructure deficit, while responsibly managing the public finances,” Infrastructure Minister Chris Bishop says.

Along with the new funding are several things that had been announced earlier, such as a regional development fund, which was part of the coalition agreement. Other plans foreshadowed earlier, include spending on defence and law and order. 

The full list of infrastructure spending, all multi-year, is as follows:

• $1.2 billion for the Regional Infrastructure Fund to support regional economies. This includes an initial investment of $200 million into flood resilience infrastructure.

 • $2.68 billion in roads, rail, and public transport, including 17 new Roads of National Significance and funding for the Rail Network Investment Programme. This Budget boosts the Land Transport Fund with an additional $1 billion in capital funding, over that previously signalled.

• $1.48 billion in school and kura property to ensure warm and dry schools, and and enough capacity to accommodate more students.

• $2.1 billion for Law and Order, including funding for an 810-bed expansion of Waikeria Prison to support stronger sentencing, and capital costs associated with delivering 500 new police officers.

• $408 million to upgrade Defence equipment and infrastructure.

• $140 million to deliver 1,500 new social housing places.

• $103 million to meet emerging cost-pressures in Health NZ’s infrastructure pipeline, which includes $11.6 billion of investments over the forecast period.

“Our Government is investing a record amount in modern infrastructure that Kiwis can rely on, and which helps to rebuild the economy. Delivering a coherent pipeline of infrastructure projects is a key part of that plan,” Bishop says. 

He adds there is more to come, with a comprehensive programme of work underway to establish a 30-year National Infrastructure Plan. This would develop a new consenting framework to get infrastructure built fast. It would use new funding tools like tolls, public-private partnerships and value capture to enlarge the existing pipeline of projects.

“Budget 2024 returns funding to Budget allowances so that decisions over climate and resilience investments can be made through the normal Budget processes. 

“The Government has ensured it has plenty of room in its fiscal plan to fund emerging infrastructure needs,” Bishop adds.

“Budget 2024 tops up the Multi-Year Capital Allowance (MYCA) by $7.0 billion. This means a total of $7.5 billion remains in the MYCA to be allocated for future investment ready projects.”