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Corrections will get an extra $355 million over four years to help cope with a growing prison population, reduce re-offending - and deal with the threat posed by deportees sent from Australia.
And Police will close to $300 million in new operating funding - its first significant boost in five years, most of which will go towards covering pay increases.
Corrections has also budgeted $5 million for the costs involved in it resuming management of Mt Eden Corrections Facility, after Serco's 10 year contract was cut short at 6 years.
Officials have been surprised by how fast the prison population has increased, and it is now forecast to reach 9800 by the end of the year. Just over $290 million of funding will be used by Corrections to deal with this increase.