New Zealand will return to surplus a year earlier than expected and borrow $6 billion less than previously forecast, according to Budget 2026 forecasts released today.
Prime Minister Christopher Luxon said the Budget demonstrates economic and fiscal discipline to steer New Zealand through an uncertain global environment.
"At a time when many Kiwis are making careful choices with their budgets, the Government must do the same," Luxon said. "New Zealand cannot tax, borrow and spend its way out of every challenge."
Economic outlook
The Budget forecasts economic growth averaging 2.7% and 220,000 new jobs to be created over the next 4 years. Wages are expected to outstrip inflation over the same period.
The global fuel crisis has affected most households and businesses, providing the backdrop for the Government's fiscal settings.
Savings and spending priorities
The Government has made $50 billion of savings across 3 Budgets. Budget 2026 redirects investment to new roads. The Government says this will help boost economic growth.
Other priority areas include Police. The Government says this will crack down on crime.
The Budget also redirects investment to schools. The Government says children will be taught the basics.
The Budget redirects investment to the health system. The Government says this will ensure people get care when they need it.