Cullen's 'election-winning' budget

3.00pm - by PAULA OLIVER and JEREMY REES

PARLIAMENT- Treasurer Michael Cullen said his third Budget would be a "no surprises" affair with no election year spend-up.

He was right.

Wearing a red tie and sombre grey suit, the Minister stood in the House at 2pm today and delivered one of the least surprising Budgets in recent years.

The aim was to balance sound fiscal management, fiscal prudence and predictability with new spending.

It is, he told the House, "not an election-buying Budget. It may well be an election-winning one."

Most of the key announcements had been made well in advance:

* a funding package for health worth more than $400 million

* extra cash for tertiary education as well as a new strategy to make sure the country gets graduates the Government believes will provide an economic benefit.

* $1.2 billion contribution to the superannuation fund.

Also as expected, Dr Cullen was able to announce a better than expected budget surplus of $2.6 billion and an estimated $2.3 billion for next year.

The country's economy was growing at a rate of 3.1 per cent, he said.

Despite the fact most of the details from the economic growth rates to the major announcements had been well signalled in advance, there were some new policies.

Among them was new spending - to the tune of $349 million over ten years - for the Department of Conservation to cover the depreciation of the country's national parks, huts and walkways.

Dr Cullen also announced policies to transform the country's economy by policies to stimulate innovation.

Money has been put into increasing the apprenticeships scheme, attracting foreign investment, getting internet access to all rural areas including the most cut-off.

The Budget was immediately attacked by the Leader of the Opposition, Bill English as being devoid of new ideas and short on money for social spending.

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