12 May 2014

Nearly $1b new spending in Budget

6:00 am on 12 May 2014

The Prime Minister has confirmed there will be almost an extra $1 billion in new spending announced in the Budget this week.

John Key.

John Key. Photo: RNZ / Chris Bramwell

John Key won't say where the money will be spent.

Exactly $15 billion was earmarked for health in last year's Budget and John Key has confirmed that the sector will get just over that amount when his Government's sixth budget is delivered on Thursday.

Mr Key has been attending a National Party regional conference in Queenstown.

He would not say where the extra billion in new funding will come from, nor where it will be spent.

But Mr Key said the Budget would show the Government's books were back in surplus and how well the economy is doing.

"It's going to be a very solid Budget, it's going to show how strong the economy is, I think overall how well New Zealand is doing."

Mr Key said he believed it would be in stark contrast to Australia's budget, to be delivered on Tuesday.