Editorial: Test of Budget will be at polls

Yesterday's Budget was unmistakably National, and one which epitomises that party's current brand of conservatism.
Of course, in the current financial climate, fiscal conservatism is no bad thing.
But amid all the talk of the Government needing to exercise caution in this Budget, largely because of the circumstances brought on by the global financial crisis and Canterbury's twin earthquakes, Finance Minister Bill English's announcements about the partial sale of state-owned energy companies, reduced shareholding in Air New Zealand and cutbacks to KiwiSaver and Working for Families were met with the predictably shrill cries of dissent from the opposition benches.
Here in Wanganui, the largest concern leading up to yesterday's Budget was likely to have been around the prospect of cuts to Working for Families.
Yet, the changes were revealed to be modest, with the Government's cuts targeting those at the higher end of the income scale, while most of those on lower incomes are expected to get an increase from April 1 next year.
This city's early childhood centres will be pleased with the $550 million committed to early childhood education, albeit that it's coming after cuts to the sector's funding in the 2010 budget.
Plus, there's also some expenditure which few will be able to argue with, the $5.5 billion committed over six years for a new Canterbury Earthquake Recovery Fund being the prime example.
There's also likely to be little dissent over the decision to clamp down on student loans, in particular loans for people over 55, and the cutback on the repayment "holiday" for students who go overseas. Students will naturally be upset.
There will be unease in the River City at the forecast cuts to KiwiSaver - yesterday's Budget revealed the depth of the cuts, with the tax credit being halved and employers and employees being told to contribute more.
It's hard to imagine any other election-year Budget which has been so short of handouts.
John Key and his Government have taken the gamble that after years of financial hardship, most voters will realise the need for a Budget which reflects the situation the country's economy finds itself in, and understand the need to tighten the purse strings.
Whether the Government's gamble pays off will become clear at November's general election.