Business and the medical and science fraternities welcome Budget measures.
However, union groups and educators are among those not so impressed.
ACT's finance spokesman, Sir Roger Douglas, lashed the Government for spending too much money in the Budget.
"They suffer from the tyranny of the status quo - more borrow and hope," he said.
Sir Roger said the tax cuts that had been scrapped would have cost the Government less than $1 billion.
"The Government needed to find just 1.5 per cent of waste to deliver their tax cuts," he said.
"This is against a backdrop where government spending is, in real terms, $18 billion higher than it was nine years ago."
Progressive Party leader Jim Anderton said the budget was a weak response to the problems created by the international economic crisis.
"Governments around the world are investing in the future," he said.
"This one has slashed the future, this is the broken promise budget."
Mr Anderton said huge cuts had been made in science and research, which was an economic disaster.
The budget debate was adjourned so the Government could put Parliament into urgency to pass legislation repealing the budget cuts.
Labour leader Phil Goff said the Budget's "decade of deferrals" of payments to the New Zealand Super Fund is the death knell for superannuation for generations of New Zealanders.
"National has never been committed to the Super Fund, and it has shown its true colours," Phil Goff said. "They don't believe in universal superannuation. Not only have they gutted KiwiSaver. Now they've gutted Super as well.
"Finance Minister Bill English claims the Government has to suspend automatic contributions to the Fund because New Zealand cannot afford to borrow to maintain the payments.
"Ongoing contributions to the Super Fund are essential to guaranteeing future super payments to New Zealanders.
"The net result of today's decade of deferrals will be that future entitlements to super are put at risk no matter what pious pledges Bill English makes now. Future governments will struggle to cope with the John Key-Bill English superannuation legacy."
Business pleased there were no nasty surprises
The business community is welcoming the Government's "no surprises" Budget.
"Shocks at times like this are a bit risky," said Business New Zealand chief executive Phil O'Reilly. "The Budget doesn't have a hint of panic about it."
O'Reilly said business was disappointed there was no "plan B" replacement for the previously removed regime of tax credits for research and development.
He added that business was disappointed tax cuts were delayed, but at least they were only delayed, not cancelled.
The Budget was noteworthy for reining in growth in government spending and also for its emphasis on productivity, he said.
Shortsighted, claim unions
The CTU has criticised today's Budget for not doing enough to stimulate the jobs market and invest in skills.
Peter Conway, CTU Secretary, said: "This was always going to be a tough Budget requiring difficult choices. But the Government could have done more in the short run to boost employment and has actually reduced planned funding on industry training."
Conway said that the home insulation programme could have been scaled up and combined with other job creation schemes to really assist the growing numbers of unemployed. Add in more investment in skills, allow for expanded tertiary education numbers, and scale up advice and support for those laid off and then we would have seen a Budget about jobs and people."
"The central forecast in today's Budget was for unemployment to rise to 8 per cent or 179,000. That means many more households and communities will be impacted by unemployment as well as creating added cost to the Government."
And EPMU acting national secretary Bill Newson said the Budget is a lost opportunity for the government to help Kiwi workers.
"With our economy bleeding a thousand jobs a fortnight this should have been a Budget focused on providing jobs for New Zealand workers. Today the government has denied them that opportunity.
"The only mention of jobs in this Budget was a re-announcement of the nine day fortnight and the ReStart scheme, both of which are ambulances at the bottom of the economic cliff.
"We are also concerned about the government's effective cuts to industry training funding as training will be a critical part of using the downturn as an opportunity to increase our skill base in preparation for the coming economic upswing.
Spending cuts yes, but what about growth?
The Budget released today contains little in terms of changes to support any real economic development, says the New Zealand Manufacturers and Exporters Association (NZMEA).
"No attempt has been made to tackle the fundamental imbalances in our economic framework", said NZMEA Chief Executive John Walley.
"The reasons we have been in a recession for a year are clear. Our tax system promotes asset bubbles rather than productive activity and our monetary policy framework creates overvalued exchange rates and high interest rates. Neither of these problems have been addressed."
"Incentives to invest in Research and Development and productive assets such as equipment and machinery are lacking."
PSA fears for public sector jobs
"The Budget continues the government's rolling maul of restructuring and job cuts in the public sector," says Public Service Association national secretary Brenda Pilott.
"We estimate that the government's budget reviews in the public sector have already led to around 1470 jobs being cut."
"We're expecting more jobs to be cut despite the Minister of Finance saying the government was particularly concerned about the need to create new jobs.
"Clearly the commitment to keeping New Zealanders in work does not extend to public sector workers."
Announcement warms their hearts
The Community Energy Action Charitable Trust (CEA) has applauded the Budget announcement that increases funding for subsidies of insulation and heating. CEA is one of the organisations approved by the government to deliver the insulation and heating subsidy programme.
"Fuel poverty, where households cannot afford to keep warm, is a reality in our community," said Bede Martin, chief executive of CEA. "It is encouraging to see that the government recognises that it needs to be addressed and continues to increase its investment in making our homes healthier and more energy efficient."
Prudent and realistic, says Dunne
UnitedFuture leader Peter Dunne has endorsed the Budget handed down today as "prudent for the times".
"The Budget is a careful balance of new spending and the dropping of inefficient past programmes, in sharp contrast to the 'slash and burn' approach of National Party Budgets of the early 1990s," he said.
Mr Dunne describes the deferral of the next round of tax cuts as "disappointing but inevitable in the current fiscal circumstances."
"They make it all the more the important that the Government's medium term objective of aligning the top personal, corporate and trust rates at 30 cents be achieved and I am looking to the work of the tax policy working group set up recently by Victoria University providing guidance on that point for future Budgets," he said.
Much more to be done - Business Roundtable
The Budget is a first step on the long road to economic recovery, Roger Kerr, executive director of the New Zealand Business Roundtable, said today.
"The Budget recognises the need to shift resources from the domestic economy to internationally competing industries. This is necessary to reduce the current account deficit and New Zealand's vulnerability to external funding constraints. Firmer plans for faster adjustment are desirable. There is no need, for example, to allow the unemployment rate to rise to 8 per cent of the labour force as forecast in the Budget."
Kerr said that, in this context, the plans for curbing government spending growth were inadequate. "Core Crown expenses are expected to grow by as much as $3 billion this year, and it was sobering to note that they are forecast to rise from 32 per cent of GDP in 2007/08 to 37 per cent in the government's term of office.
"Given these trends, this cannot be described as a tough Budget. Increasing the government spending share of the economy at the expense of the private sector is inconsistent with achieving faster economic growth."
'Slap in the face' for industry training
The Government's Budget flies in the face of its own statements recognising the importance of industry training to helping the country through the recession, the Industry Training Federation said today.
"Less than three months ago, we attended the Prime Minister's Job Summit where he stated that he was keen to determine what could be done to keep up or increase levels of industry training during this recession," Executive Director Jeremy Baker said today.
"Today the government formally responded by in effect cutting funding to industry training while passing on significant increases in funding to polytechnics and universities whose qualifications cost the taxpayer around three times as much as the industry training sector and often contain only a tenuous link to the country's economic and social needs. This is achieved by taking away inflation-adjusted increases for industry training, while leaving them in place for tertiary education providers.
"We are appalled that the Government has chosen to make the inequities in funding between the sectors even greater than they already are.
Meat & Wool welcomes research commitment
Meat & Wool New Zealand has welcomed the Government's commitment to supporting the pastoral sector with funding for a range of Research and Development and innovation projects.
Chairman Mike Petersen said that the level of investment made available highlighted the Government's recognition of the sector's considerable earning potential.
"The budget has signalled that New Zealand is in for a challenging few years with the financial crisis that has dominated the world economies. However New Zealand is well placed for an earlier recovery than other countries with the sheep and beef sector leading the way.
"It's pleasing to see the Government growing its support to the primary sector which makes up 64 per cent of exports and generates $24.5 billion for the New Zealand economy."
NZ's retailers "will respect tax decision"
Auckland's leading retail district says the suspension of the 2010 and 2011's tax cuts will not affect consumption, because taxpayers would have been unlikely to spend the extra money on consumerables anyway.
"I think it's fair to say the 1 October and 1 April tax cuts did not provide a measurable boost to retail simply because consumers have cut back their spending. People are very recession wary.
A few more dollars in the back pocket won't actually get the cash registers ringing. In this recessionary environment people tend to hold on to any extra money or use it to pay off debt than spend it on consumerables," said Cameron Brewer, general manager of the Newmarket Business Association.
"Deferring the tax cuts is the prudent thing to do. Focusing on good economic management and stability will in the long term benefit business more than a couple of rounds of tax cuts."
Boost for Food Science
Food Innovation New Zealand (FINZ) welcomed the Government's announcement of $321 million in new initiatives in research, science and technology.
FINZ is a joint venture between the country's leading food research organisations, including Massey University, AgResearch and Fonterra.
The organisation aims to promote more collaboration between New Zealand's experts in food science and to attract more local and global food companies to commission research in New Zealand.
Dean Tilyard, CEO of the Bio Commerce Centre says that the new funding, particularly the announcement of the new Primary Growth Partnership, proves the current government recognises the need to continue to support New Zealand's largest and most important industry, agri-food.
Nothing for high-tech industries
The Engineers Institute believes funding in high technology industries also needs to be supported alongside the primary and food sectors to ensure New Zealand's future economic growth.
"The funding for the Primary Growth Partnership to invest in innovation in the primary and food sectors is essential for long term economic growth, but no nation has become wealthy on biology alone. What we don't see in this year's budget is a boost for high technology industries," said Tim Davin, Director of Policy for the Institution of Professional Engineers of New Zealand.
"Whilst a well performing biological sector will ensure that New Zealand drops no further down the OECD league table, we also need a major focus on creating high tech industries in the manufacturing, ICT and design industries that will create highly skilled jobs," said Davin.
Prudent and responsible - local government
"Today's Budget clearly outlines the government's commitment to working with local communities to boost the economy and heighten job prospects", said Local Government New Zealand President Lawrence Yule.
"However, there is more that needs to be done - and it requires greater investment in the overall relationship between central and local government," he added.
"To begin with, the network of roads, water and IT infrastructure owned and maintained by councils represents a platform of growth for the economy that cannot be ignored, and provides the most easily accessible opportunity to stimulate the economy and create jobs.
Meanwhile, the Wellington Regional Chamber of Commerce has labelled today's Budget as prudent and responsible in light of the extraordinary state of the world economy and the fiscal pressures facing the government.
"The government has struck the right balance between stimulating the economy and constraining debt in the medium term," said Chamber CEO Charles Finny.
"Some bold steps to constrain expenditure and keep debt down have been taken. Businesses are very aware of the importance of New Zealand avoiding a credit-rating downgrade and the implications that not doing so would have for interest rates.
"We welcome the proposed new investment in infrastructure, particularly in the areas of transport and broadband. Increasing New Zealand's productivity growth depends on such investment."
"Wrong choice" for tertiary learning
"Cutting the funding supporting academic salaries in universities will have major ramifications for the future of research and learning in New Zealand" said Tertiary Education Union (TEU) national secretary Sharn Riggs.
"That money was introduced to help New Zealand retain our best university academics and staff as well as to compete internationally for the best staff. Recently Australia responded to the global recession by investing over AU$5 billion in tertiary education and the United States has invested over US$30 billion.
"The decision to cut the tripartite funding combined with other countries' investment programmes in tertiary education means that New Zealand universities may not be able to address the pay disparities internationally. If we don't want our brightest academics and researchers here in New Zealand then other countries will queue up for them."
Tax system vulnerable to global crisis
Budget 2009 takes a responsible position on tax cuts in the current economic climate, but is a sharp reminder of how vulnerable our tax system is to a global recession, PricewaterhouseCoopers Chairman John Shewan said today.
Shewan says taxes for the period 2009 to 2013 have dropped a massive $15 billion based on Budget 2009 relative to the forecast just six months ago. Company tax has fallen $2.2 billion or 22 per cent in the past 12 months alone.
"The key problem we face is that Government spending has been increasing steadily, rising an alarming 49 per cent over the past five years," he says. "Tax revenue rose by about 25 per cent over the same period, but it still enabled us to run surpluses. The sharp downturn shows how quickly the Government accounts turn red if taxes and spending are out of kilter."
Science and technology support welcomed
Budget initiatives announced today in support of science and research are a big step in the right direction, according to Neville Jordan, President of the Royal Society of New Zealand.
"Investing in the country's scientists is vital, not only to help find ways for New Zealand to recover from the current recession but also, longer term, to enhance and underpin New Zealand's economic stability and growth, and our reputation as a cutting edge environment for global research," Mr Jordan said. "On-going investment will be crucial to promoting productivity, growth and innovation to drive New Zealand forward."
Mr Jordan said the Royal Society was especially pleased with the Budget's $9 million annual increase in investment in the Marsden Fund - the biggest increase since the Fund was established 14 years ago and one which takes its annual funding to $47 million.
"The Marsden Fund plays an important role in supporting New Zealand's top researchers and is also vital in nurturing up and coming young scientists, a role that is close to the heart of the Royal Society."
Welcome investment in medical workforce
Extra GP training places, on top of extra places at medical schools, are the first requirements to address health workforce issues, says Karen Thomas, CEO of the College of GPs.
"Government has listened to sector priorities," Ms Thomas said, welcoming today's Budget announcements.
In addition to the 200 extra places at medical schools over five years, the Budget boosted GP training with 25 extra GP training places in 2009/2010, increasing to 50 extra places per year - $17.5 million over four years.
"There is also $46 million to DHBs to devolve some hospital services to primary care," Ms Thomas said, "which will lead to significant overall savings, not only in cash terms but particularly in patient waiting times."
Police commitment
The commitment in the Budget to put an extra 300 police officers into frontline roles in Counties-Manukau by the end of next year has been warmly welcomed by a Manukau City Councillor who represents one of the communities set to benefit most.
Manurewa councillor Daniel Newman said more frontline police working in neighbourhoods such as his was a top priority, and the reaffirmation of the Government's commitment to fund the additional staff for the Counties-Manukau Police was a major boost for local law enforcement.
"The Government's commitment will cost a lot of money and take some time to implement. But I am absolutely convinced that the additional frontline police staff working in our community and elsewhere across the district will have significant benefits.
"In the short term the increase in officers working on the frontline will likely see recorded crime increase, as the community gains the confidence necessary to report offending that might otherwise have gone unreported.
"But over time we will likely see resolution rates improve as we start to turn the tables on criminal offenders. This must be our long-term goal," Cr Newman said.
51,511 offences were recorded in the Counties Manukau Police District in 2008.
Boost for aged residential care sector
The Government has made good on an election promise for an additional $90 million over four years for the aged residential care sector. This is to help retain and recruit nurses and for respite care.
"The extra funding will go a long way towards the sector meeting the challenges it faces", says HealthCare Providers New Zealand.
Fonterra welcomes R&D investment in agriculture
Fonterra Co-operative Group said today it welcomes the Government's announcement of additional research and development investment in the primary sector via the Primary Growth Partnership initiative.
"Fonterra recognises that these are challenging times and the fact that the Government is making this investment now recognises the importance of the pastoral sector to the New Zealand economy," said Andrew Ferrier, Chief Executive of Fonterra.
"For our own part, Fonterra is committed to innovation, and investment in this area will help to secure and grow the future of dairying and the New Zealand economy."
