English targets spending plans

May 28's Budget will result in cuts to planned increases in expenditure in a number of areas, including tertiary education, says Finance Minister Bill English.

Mr English accused the previous Labour Government of "booking up" increases in future budgets that had had no money set aside.

This included a $200 million-a-year economic transformation package and more money for tertiary institutions planned to start in a few years.

Most of the cuts to planned increases would affect budgets two or three years away, Mr English said.

"It will mean that some people won't get some of the things they might have been expecting, but equally no one will lose anything they already have."

Contractually agreed increases such as the $190 million for teachers' pay rises would be funded.

The Australian Budget was delivered on Tuesday with plans to shield jobs through wide-ranging infrastructure spending.

Mr English said the Australian Government was also increasing pension payments significantly and to offset that was raising the age of entitlement.

"We are not raising the pension significantly and so we haven't contemplated raising the age at all."

- NZPA