The Government’s annual Budget will be released on May 18.

Finance Minister Grant Robertson made the announcement when appearing before Parliament’s Finance and Expenditure Committee to talk about his Budget Policy Statement, released in December.

Robertson suggested the amount of money earmarked for capital expenditure, like infrastructure, would increase due to Cyclone Gabrielle and flooding in the upper North Island.

He said the capital allowance was “clearly under strain”.

In December, Robertson pencilled in $12 billion of new capital expenditure across Budgets 2023 to 2026. This was a decent jump from previous expectations.

Robertson, in December, also suggested there would be $4.5b of new operational expenditure in Budget 2023.

While he was less definitive in the meeting about how the weather events might affect the operating allowance compared to the capital allowance, he was clear there would in fact be an impact.

Robertson again stressed government ministers were going through a reprioritisation exercise when it came to its focus and spending.

“We have continued to take a careful and balanced approach to manage our finances responsibly and help take pressure off inflation. It means that as we respond to the rebuild we will have to prioritise the projects that are proposed and some will not be funded or have to be delayed,” Robertson said.

He said the cost of living crisis and cyclone and flooding recovery would be the focus of the Budget.

“We are committed to working with local communities to get affected families, farmers and businesses back on their feet and their regions back moving. The economic and fiscal impact is not yet fully known, but we know the rebuild will be in the billions of dollars,” Robertson said.

“The Government has taken action quickly to provide certainty and assurance in these early stages of the recovery and further support is coming.”

On the cost of living, Robertson noted the Government has already extended the fuel tax reductions and half-priced public transport fares to the end of June.

He said it was considering further support to “lighten the load” on households and businesses.

“This budget will be delivered in a volatile and uncertain global environment, which will affect our prospects,” Robertson said.

“The Government books are in solid shape thanks to our strong economic and financial management. Our debt levels are among the lowest in the world and we are well positioned to handle the impacts of Cyclone Gabrielle and further economic shocks…

“The Government has committed to investing heavily in the strong public services that New Zealanders need, in hospitals, schools and housing. We will continue to address climate change, with a focus on adaptation as the extreme weather events that we have experienced become more frequent.”