Budget slashed by $13.2 million, overall surplus $1.2 million

In his first Appropriation Bill the Minister for Finance Mark Brown has played the magician. He has caused $13.2million to vanish and has pulled a $1.2million rabbit from out of his hat.
When parliament resumed at 10am on Friday 15 April 2011, Minister for Finance Hon Mark Brown tabled his first Budget as Minister.
Brown tabled the Appropriation Amendment 2010/2011 and in his speech told the House that while some of the issues giving rise to the need for the supplementary budget were complex in nature such as the Toa and Air NZ underwriting, the bill was relatively straight forward.
The total appropriation is $144,446,888 which is a reduction of the total of $157,689,887 in the 2010-11 Budget.
Brown said this was a first for the House in that the Amendment sought an overall reduction of $13.2 million. Despite this the Minister has achieved an overall surplus of $1.3million.
He outlined the significant adjustments as;
1. Provision for non -discretionary items ordered by the Court.
2. Provision to meet immediate promises that government pledged in their election manifesto.
3. Provision to ensure the new government was on a balanced keel to fund administration costs for the rest of the 2010-2011 year.
4. Deferment and reprogramming of expenditures of loan and donor funds to the 2011-2012 year.
5. Provision for financial adjustments that are generally non-discretionary in nature.
Some of the highlights mentioned by Brown were;
1. Overall reduction of $200,000 to Ministry outputs.
2. Increase in payments on behalf of the Crown by $1.2 million to $29.7 million.
3. Court ordered costs in the Toa case of an additional $500,000.
4. $200,000 for election and by election over-run costs.
5. $2 million for Tourism marketing.
6. Increase in new born allowance from $300 to $1,000.
7. Small adjustment to Civil List to provide for MPs clothing allowance.
8. Operating surplus of $1million from higher departure tax revenue and fishing licenses.
9. Deferment of the $9.5 million ADB loan for economic recovery to the 2011-2012 year.
10. $300,000 increase in outer islands capital (automated weather station-$200,000, freight costs for Chinese tractors-$100,000, Pukapuka cyclone shelter $100,000).
11. The $7.4 million for non-operating costs to be funded by the $1million surplus, depreciation of $6.1million and $1.5million from the loan reserves.
The overall budget balance is a surplus of $1.3million.
The House has adjourned so the members can study the document ahead of the debate next Monday.

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