By Maggie Tait of NZPA

Wellington, May 28 NZPA - Key points from today's budget:

* new spending of $1.7 billion in 2009-10 and $5.8 billion in total over to 2012-13 and $1.4b in new capital spending by 2012-13.

* Operating balance expected to worsen. For 2009 the deficit was expected to be $2.9b before growing to $7.7b in 2010 and hitting $9.26b in 2011. The worst deficit of $9.58b was forecast for 2012 before reducing to $8.4b in 2013.

* Growth in the economy was not expected to pick up until 2011 -- negative 0.9 percent this year, negative 1.7 percent in 2010 then into positive territory in 2011 on 1.8 percent.

* Deferral of 2010 and 2011 tax cuts.

* Reprioritising $2b of the Labour Government's planned spending.

* Suspending full payments to the Superannuation Fund -- reducing in 2009-10 from $2b to $250m and no forecast further payments until 2020.

* $323.3m home insulation and clean heating programme. Grants of $1500 for insulation and $500 for heating for home owners, with no income testing.

* Some $3b for health over four years, $750m in 2009-10. This includes $2.1b to improve District Health Boards' services and meet population growth; $70m for 800 health professionals to work in elective surgery; $103.5m improving and meeting more demand on maternity services; $245m 20 new elective surgery theatres.

* $1.68b ($1b new money) in education for new schools, literacy and numeracy and expanding the 20-hour free early childhood education scheme to include playcentres and kohanga reo.

* $900m for more police, probation officers, double bunking in prisons.

* Under infrastructure; $290m to start the $1.5b broadband to the home policy and the government was lifting spending on state highways to $1b over three years.

NZPA