In this year’s Budget we will prioritise maintaining that credibility.
Budget 2026 is about securing New Zealand’s future. Fiscal repair balanced with careful capital investment features heavily in that story.
The good news is that with the Budget now officially signed off, I can confirm a few details.
First, the Government’s fiscal strategy underpinning that approach – and our commitment to achieving it – remains unchanged.
The Government remains committed to putting debt on a downward path towards 40% of GDP, and to returning the books to surplus by 2028/29.
Achieving that will be a tall order and will require careful choices in the years to come.
But responding to the current fuel crisis – a crisis of national resilience and economic security – through more spending would risk leaving New Zealand even more exposed.
So, in that spirit, I can confirm that the Minister of Finance will once again keep new spending in the Budget below the operating allowance previously set in the Budget Policy Statement.
At the same time, while we continue to prioritise a return to surplus, the recent crisis has acted as a timely reminder that significant levels of capital investment will be required in the coming years.
To build modern and resilient infrastructure able to withstand an increasingly volatile world.
And to invest in the schools and hospitals New Zealanders rely on to receive modern, responsive public services.
So this year’s capital package will be larger than originally planned, at a net $5.7 billion.
That doesn’t reflect a permanently higher rate of borrowing – we’ll need to get the balance right in the years ahead, as we rebuild our fiscal buffers.
Promoting financial security isn’t just about the Government’s financial position.
The truth is that as a country we don’t save nearly enough, and rely too much on money borrowed from overseas to support our lifestyles.
That must change.
Government’s role must shift from simply meeting the rapidly growing cost of New Zealand Superannuation, to which we remain committed, to a stewardship role for New Zealanders’ financial security, supporting greater levels of private savings and investment.
In last year’s Budget we agreed to lift KiwiSaver contributions from 3% to 4%. If National is re-elected, we intend to lift contributions further to 6% each for employers and employees.
We have what the world wants. We are a reliable partner. We have values worth defending and a future worth building.
But none of that is guaranteed. It must be chosen, and it must be worked for.
The world is at an inflection point. The question is not whether New Zealand is affected – it is. The question is whether New Zealand is ready.
