The Finance Minister says the Government is spending more than it planned to in the Budget, because of Cyclone Gabrielle.

Under the so-called "back to basics" budget, the $5 prescription fees will be abolished from July, and two-year-olds will be eligible for 20 hours free early childcare from next March.

Public transport will be made free for under 13s, and half price public transport will continue for those under 25.

Grant Robertson told Mike Hosking while government consumption is trending down after Covid, the cyclone recovery is creating extra costs in the short-term.

“That is the cause of the move from it being seen as more expansionary but I think most New Zealanders would want us to deal with the cyclone, we could be having a very different conversation this morning if we hadn’t done that.”

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