According to this year's Budget, announced today, the Government will spend a monstrous $50 billion on its COVID-19 recovery plan in a bid to save almost 140,000 jobs across New Zealand.  

The hottest talking point is the eight-week extension of the wage subsidy scheme, with up to $3.2 billion set aside in what’s been dubbed the “Jobs Budget”. 

From 10 June, businesses which have suffered, or are expecting to suffer, a 50 per cent loss of revenue, will be eligible for the scheme's extension. 

There is also $400 million set aside for tourism businesses nation-wide, which may have a crucial impact on Central Otago-based tourism operators.

Historically, it is the biggest spending package New Zealand has ever had. 

To pay for the recovery package, the Government will borrow hundreds of billions of dollars. 

It is forecast the Government debt will more than double to $200 billion, and there will be deficits in the tens of billions of dollars for years to come. 

Treasury forecasts show by 2024, the Government would have borrowed close to $200 billion – that's up from the current $90 billion already owed. 

Government debt was about $65b just two months ago. 

“This budget is about jobs,” Finance Minister Grant Robertson said. 

“Keeping people in jobs… retraining and training people for new jobs… a once in a lifetime budget. 

“While we weren’t able to save every job, we did whatever we could to save people.” 

"This is the most significant financial commitment by a New Zealand Government in modern history.”

Finance Minister Grant Robertson delivers the 2020 budget speech in parliament today

He said now was not the time for tax reform, instead, now was the time for rebuilding. 

Deficits will average $28 billion a year over the next two years – reaching as high as $30 billion next year. 

Meanwhile, GDP is forecast to drop by 4.6 percent in the year to June. 

Prime Minister Jacinda Ardern said the new spending means New Zealand's unemployment rate can be reduced to 4.2 percent within two years – roughly the level it's at now. 

The Government expects unemployment to peak at about 9.8 per cent in September. 

New Zealand's total level of employment is expected to rise by 234,000 over the next two years. 

Jacinda said she was confident the Government is right to be borrowing and spending. 

"As a country, we saved for a rainy day for this exact reason," she said. 

She said the Treasury suggests the $50 billion package could see as many as 138,000 jobs saved in the coming few months alone. 

"We will bring the same determination and focus to jobs and the economic rebuild as we brought to our health response," she said. 

The Minister of Finance said businesses are currently struggling and some will continue to do so. 

He cites those in the tourism, hospitality and retail sectors – "this is why we are extending the wage subsidy scheme".

"There are still tough times ahead," Grant said.

"But we have made it this far in fighting COVID-19 by drawing on every bit of who we are as New Zealanders."

Businesses who have experienced a 50 per cent loss of revenue will be eligible for the upgraded wage subsidy scheme, Finance Minister Grant Robertson outlined in today’s Budget announcement. 

Businesses which have had a 50 per cent hit to their revenue in the 30 days prior to their application date, compared to the same period last year, will be eligible for the extended wage subsidy. 

The Ministry of Finance has opened the scheme up to "high-growth firms" and research and development startups.

New Zealand's railways also receive an extra $1.2 billion, which includes $246 million for building more tracks and $421 million for more trains. 

There is also a $3 billion infrastructure investment package which the Government said will help create jobs. 

An extra $400 million has been set aside for new Interislander ferries and fixing the ports they service.

Other tickets include a $400 million targeted tourism support fund and $830 million disability support package.

Billions of dollars are being poured into trades and training, which is also expected to create more employment.

About $1.6 billion will be spent on a new apprenticeships programme - in addition to more than $300 million for additional tertiary enrolment - and $400 million to support employers to retrain and keep their apprentices.

The school lunches programme has been expanded too, receiving a $220 million boost.

This means the programme will be expanded from 8,000 children, to roughly 200,000 by mid-2021.

"A full stomach makes all the difference to a child's learning," Jacinda said.

Almost $1 billion has been specifically allocated to Māori with a major focus on job creation.

A further $136 million will go towards Whānau Ora over the next two years to continue support for communities who need it the most.

Pacific peoples will be allocated $200 million in support funding, to ensure Pasifika Culture and Heritage Funds are able to continue and these will be announced in the coming days, such as a funding package for arts and sports, with many more announcements likely.