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Summarised by Centrist
The government has unveiled Budget 2026, combining new infrastructure spending, targeting cost-of-living support and investment in cyber security while maintaining its goal of returning the books to surplus by 2028/29.
Ministers say the package is designed to respond to rising fuel costs, strengthen economic growth and improve frontline services.
A major feature of the Budget is support linked to higher fuel prices following instability in the Middle East. Measures include a temporary $50 weekly increase to the In-Work Tax Credit, $150 million to expand strategic fuel reserves and a $450 million contingency fund for further assistance if fuel costs continue to rise.
The government forecasts average economic growth of 2.7 per cent over the next four years, with unemployment expected to fall to 4.3 per cent.
Infrastructure spending is led by a $1.773 billion commitment to the Cambridge to Piarere Road of National Significance. Transport Minister Chris Bishop said the project would strengthen freight links through the upper North Island and reduce deaths and serious injuries on the route by about 70 per cent.
Health receives a significant cyber security boost, with $153.6 million allocated to improve protection of patient data and critical systems. Health New Zealand will contribute a further $300 million toward broader digital upgrades, including replacing ageing equipment and modernising radiology systems.
The Budget also includes welfare and employment initiatives. Social Development Minister Louise Upston announced $93.3 million to help sole parents into work, $22.4 million to reduce reliance on emergency housing and $45 million for community food support programmes.
Meanwhile, the government plans to modernise the SuperGold Card, introducing photo identification and enhanced security features. The upgraded card is expected to be available in both physical and digital formats from 2028.
