The Govt has allocated just under $500 million annually to health - $250m less a year than the increase in last year's budget.

The top income tax rate has been slashed to 33 cents as part of across the board tax cuts, with the Govt promising most NZers will be better off, despite a rise in GST.

Politically safe, yet economically timid and fiscally vulnerable - that's the initial verdict on Bill English's second Budget.

The Budget avoids the potential trap of being too austere and fiscally virtuous too soon, when the recovery is still in a young, frost-tender stage.

New Zealanders earning over $50k will now be paying less tax than Australians after today's tax cuts.

"There is not much we would be critical of," says Business Roundtable executive director Roger Kerr. "The budget reveals sound steps but not step changes."

Owners of both commercial buildings and rental houses will no longer be able to claim depreciation on their investments.

NZ remains financially vulnerable, but there are positive signs emerging and the economy is on track to grow, Bill English says.

Lingering concerns around the prospect of a European debt crisis will weigh on the kiwi dollar, with the currency expected to continue trading in its recent range this week.

Britain's beleagured Prime Minister Gordon Brown has made a big gaffe in the lead-up to the election.

The Government's bank balance is better than forecast ahead of next month's Budget, but its income from tax has taken a hit.

Treasury Secretary John Whitehead says the rental property tax scheme creates the wrong incentives.

Vision Securities has gone into receivership, but Treasury says $28m of investors money is safe.

Up to six Government departments face investigation in the hunt for the sources of leaked Cabinet papers.