A National Accounts Categorisation of COVID-19 Funding Allocation and Expenditure

Andrew Binning, Nairn MacGibbon and Peter Mawson ()
Additional contact information
Peter Mawson: The Treasury, https://www.treasury.govt.nz

Treasury Analytical Notes Series from New Zealand Treasury

Abstract: In April 2020, the New Zealand government established the COVID-19 Response and Recovery Fund (CRRF) in reaction to the COVID-19 pandemic and recession. The funds allocated from the CRRF totalled $70.4 billion dollars, when combined with an earlier fiscal support package. This amounted to 22% of 2019 GDP, although funds were allocated over a number of fiscal years. This analytical note presents a National Accounts categorisation of both the funding allocated to the COVID-19 response and the estimated expenditure. This will contribute to a macroeconomic understanding of the fiscal response to the COVID-19 pandemic in New Zealand and the recession that followed. We estimate that almost 80% of the funding allocated to the COVID-19 response over the first 3 fiscal years has actually been spent. Estimated COVID-19 expenditure over this period is equivalent to 16% of 2019 GDP. Wage subsidies make up the largest single component of both COVID-19 funding allocations and estimated expenditure. Government consumption makes up the second largest component. This expenditure is more backloaded, spread over a longer time horizon, and allocated across a large number of line items. Our National Accounts categorisation of COVID-19 funding allocations and estimated expenditure will be an important input in macroeconomic modelling analysis of the fiscal response to the COVID-19 pandemic.

JEL-codes: C80 C82 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2024-06-26
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.treasury.govt.nz/sites/default/files/2024-06/an24-05.pdf (application/pdf)
https://www.treasury.govt.nz/sites/default/files/2 ... tional-accounts.xlsx (application/vnd.ms-excel)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nzt:nztans:an24/05

Access Statistics for this paper

More papers in Treasury Analytical Notes Series from New Zealand Treasury New Zealand Treasury, PO Box 3724, Wellington 6140, New Zealand. Contact information at EDIRC.
Bibliographic data for series maintained by CSS I&T Web & Publishing, The Treasury ().