The Finance Minister has moved the Appropriation (2026/27 Estimates) Bill for a second reading in Parliament, outlining a fiscal path that brings the Crown accounts back to surplus a year earlier than previously forecast.
Fiscal position
Treasury is forecasting a return to surplus in 2028/29, a year earlier than forecast in December. The revised timeline comes as the Government is carrying a burden of debt following an extended period of high price increases and high interest rates that resulted in a weaker economy.
Treasury's December forecast had projected a later return to surplus than the 2028/29 target now outlined in Budget 2026.
Economic outlook
The Finance Minister told Parliament that Treasury forecasts show New Zealanders can expect growth, higher wages and rising employment. The outlook is set against a backdrop of global pressures, with conflict in the Middle East causing New Zealand households and businesses to pay more for petrol and diesel.
Countries globally are boosting their spending on defence as the rules-based global system is under strain, the Finance Minister noted in the second reading speech.
Spending priorities
The Finance Minister said Budget 2026 will deliver better public infrastructure, expanded healthcare services, better schooling, and safer communities. The appropriation bill sets out the Government's spending authority for the 2026/27 financial year.
The speech to Parliament was delivered on 28 May 2026 as the bill moved to its second reading.