Budget 2025 is a no B.S. budget.
It represents the coalition Government’s next step in securing New Zealand’s economic recovery. It focuses on growing the economy, restoring public services, and supporting families. These investments have been made through responsible financial management, not new taxes or additional borrowing.
Put simply, the economic context is improving. Inflation has dropped from 7.3 percent to 2.5 percent. Interest rates are easing. Treasury forecasts point to average annual growth of 2.7 percent over the next four years. Around 240,000 new jobs are expected, with wages rising faster than inflation. But we cannot be complacent, and this is a sensible budget to get New Zealand to better times ahead.
Below are examples of what our government is delivering for Kiwis in Budget 2025:
1. Delivering on Law and Order
$472 million over four years to expand Corrections capacity. Funding 580 new staff, including 368 Corrections Officers, and upgrades Christchurch Men’s Prison with 240 high-security beds, a new Health Centre, and a 52-bed mental health unit to improve safety and rehabilitation.
2. Strengthening Health Services
We are delivering $7 billion in new operating funding and over $1 billion in capital for health. Supporting more surgeries, longer prescriptions, improved GP access, and upgrades to Nelson, Wellington, Auckland, and Palmerston North hospitals. This includes delivery of over 21,000 additional treatments and 231,000 more GP visits.
3. Investing in Education and Learning Support
$2.5 billion to expand learning support. We are extending early intervention to Year 1, funds over 2 million additional teacher aide hours, delivers Learning Support Coordinators to all primary schools, restructures ORS funding, and invests in classrooms, maintenance, and teacher workforce development.
4. Investment Boost
A new tax incentive allowing 20 percent of new asset costs to be deducted immediately. It aims to lift business investment, productivity, and wages across the economy by improving cash flow and encouraging growth across the economy.
5. Stabilising Disability Support
A $240 million boost over four years for 7,000 people in residential care. Introduces a new national pricing model for consistency and sustainability. Responds to past review findings and enables better forecasting and equitable support.
All of these investments are made possible by identifying $21.4 billion in savings across 116 initiatives. The operating allowance has been tightened to $1.3 billion annually, and a return to surplus is forecast for 2028–29. Public debt is now on a downward trajectory after sharp increases in recent years. The Government is prioritising frontline services by redirecting funding from underperforming or unnecessary programmes.
Put simply, Budget 2025 is focused on delivery. It balances economic growth with social investment, and fiscal responsibility with practical outcomes. It backs business to invest, supports families and seniors to thrive, through targeted relief, and restores frontline services to ensure all New Zealanders can get ahead. In short, this is a Budget that delivers.
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