Finance Minister Nicola Willis has delivered Budget 2026 with increased spending on infrastructure and essential services alongside forecasts showing the Government's books returning to surplus a year earlier than previously predicted.
The budget invests in state highways, rail, hospitals, schools, social housing, courthouses, police stations and Defence capability, while increasing funding for health, education, and law and order.
"At a time when many New Zealand families and businesses are still under pressure from higher living costs and global uncertainty, this Budget takes careful steps to support New Zealanders now while strengthening the economy for the years ahead," Willis said.
The economy is forecast to grow by an average of 2.7% over the next four years, while unemployment is projected to fall from 5.5% to 4.3%. The Government's books are forecast to return to surplus in 2028/29, a year earlier than previously forecast.
Debt is forecast to begin falling sooner as a share of the economy, while wages are forecast to continue to rise faster than inflation.
The budget invests in resilience projects to help communities stay connected and recover faster following severe weather events and other disruptions. Infrastructure spending covers transport, health, education and justice sector facilities.
The Government has reserved $450 million for potential future temporary and targeted responses to the fuel crisis if required. The budget includes temporary and targeted support to households most affected by rising fuel prices.
The budget funds businesses to transition from gas to other forms of energy and funds planning reforms needed to unlock growth.