FX.co ★ New Zealand to Cut 2025 Budget Spending

In a pre-budget address, Finance Minister Nicola Willis announced that New Zealand will significantly reduce new spending in its 2025 budget, cutting the operating allowance from NZD 2.4 billion to NZD 1.3 billion. This measure aims to support the Treasury's projection for a budget surplus by 2029, although the government is striving to achieve this by 2028. "Our new spending initiatives will be tightly focused on key priorities, particularly health, education, law and order, defense, and some crucial social investments," Willis stated. She also mentioned provisions for modest business growth support and targeted cost-of-living assistance. The economic uncertainty driven by widespread US tariffs is anticipated to slow global growth and lessen the demand for New Zealand's exports, thereby diminishing tax revenue. The government plans to avoid raising taxes on wages, savings, wealth, or capital, emphasizing economic growth as the optimal strategy for enhancing revenue.