Face of the Day

So, Nicola Willis has stuck to her word. There is indeed no election year cost-of-living surprise or so-called rabbit that has been pulled from the hat this budget.

The finance minister is instead going all in on trying to convince New Zealanders the best thing for them right now is that the government get the books back into the black sooner.

It’s a short-term pain for longer-term gain pitch.

This budget’s highlight really is, then, the numbers.

They show the books getting back to surplus one year earlier than forecast in 2028–29 and that New Zealand’s debt burden will peak sooner than it otherwise would have.

New Zealand, according to Willis, will as a result be better placed to deal with any new future crisis and she says it would be politically expedient to pretend the government could afford an election year lolly scramble.

To achieve the earlier than forecast surplus, Willis has cut and reallocated billions of dollars’ worth of existing government initiatives over three years.

RNZ