2006 (2006) New Zealand budget

Submitted by	Michael Cullen
Parliament	Parliament of New Zealand
Party	Labour
Total revenue	$47.4 billion[1]
Total expenditures	$42.1 billion[1]
Surplus	$4.2 billion[1]
Debt	$10 billion (Net)[2] 5.8% (Net debt to GDP)[3]
Website	http://www.treasury.govt.nz/budget/2006
ǂNumbers in italics are projections. ‹ 2005 2007 ›

The New Zealand budget for fiscal year 2006–2007 was presented to the New Zealand House of Representatives by Finance Minister Dr Michael Cullen on 18 May 2006.

This was the seventh budget Michael Cullen has presented as Minister of Finance.

The budget allocated an operating spending of $6 billion and capital of $2.7 billion over the preceding four years.

Outline

Key issues in the budget includes:

• The Telecom New Zealand local loop unbundling.
• $1.3 billion extra for transport.
• $3 billion extra for health care, over the next four years.
• $361 million extra for schooling.
• $166 million extra for tertiary education and skill training.
• $162 million extra for early childhood education.
• While there was some lobbying for tax cuts, none were delivered.
• $8.5 billion OBERAC surplus; $1.5 billion cash surplus

Reception

Cullen's guiding principle was, he stated, "The fool who spends on the upturn will find himself broke on the downturn".^[4]

It has been labelled as the "Bondi Budget" by National party leader Dr Don Brash. Brash stated "Helen Clark and Michael Cullen believe there is a place for tax cuts – it's called Australia".^[5]