National Party Fiscal Plan

National’s fiscal plan delivers disciplined spending, lower taxes, less debt, and large fiscal buffers for future cost pressures, while increasing funding for frontline services and investing in infrastructure.

Labour inherited a very tidy set of books from National in 2017. But since then, Labour has increased spending by 80 per cent and seen debt blow out from $5 billion in 2019 to $104 billion in the latest forecast.

New Zealand cannot afford to continue down this path.

People are doing it tough right now – their household finances have been pummelled by the cost-of-living crisis, high interest rates and high taxes. Kiwis deserve tax relief and National will deliver it.

At the same time, we know schools and hospitals need more funding and future budgets will need to make room for this.

The next National government will meet these pressing needs while also charting a path back to balanced books and lower debt compared to the Government’s Pre-election Economic and Fiscal Update forecasts.

Kiwis have had to tighten their belts through the cost-of-living crisis, so it is only fair that the Government does the same with smaller allowances for new spending in upcoming budgets.

National’s disciplined approach results in a forecast $3.4 billion reduction in debt compared to Labour in 2027/28. Under National a $2.9 billion surplus is forecast for 2026/27, $0.8 billion higher than Labour.

We have provided for significant buffers, with $9.9 billion of unallocated operating spending to ensure we can respond to cost pressures and changing circumstances.

Labour’s plan does not have any credibility when they have failed to stay within their spending limits for every single Budget since they have been in office, nor when they have delayed the return to surplus three times in the last two years.

National’s fiscal plan is responsible and credible. It has been reviewed and verified by independent economic advisors Castalia.

This election is all about the economy and which party can rebuild it after six years of decline and Kiwis going backwards under Labour.

Only through a strong economy can we end the cost-of-living crisis, lift wages, reduce interest rates and afford the public services we all rely on – like hospitals, schools and police.

Read more about National’s Fiscal Plan