National’s plan to secure New Zealand’s future
National’s fiscal plan prioritises bringing down debt and delivers surplus in 2028/29, with no new taxes, Finance and Economic Growth spokesperson Nicola Willis says.
“New Zealanders have worked hard through a tough few years. National’s plan is about rewarding that hard work, letting more of what people earn stay in their pockets, and building a more secure future for families and businesses.
“Our plan will set New Zealand up for the future and put us in a stronger position to withstand the next severe weather event, natural disaster or global shock.
“Getting debt down is essential to delivering lasting prosperity for New Zealand.
“Less debt helps keep inflation and interest rates down, which means lower mortgage and business borrowing costs. That gives households more breathing room in their budget, and businesses the confidence to invest, build and hire.
“It also gives the government more space to keep investing in frontline services that New Zealanders rely on, without new taxes.
“While our fiscal plan shows a pathway to potential tax relief for working New Zealanders, now is not the time to cut taxes. National’s priority is to get on top of the debt first so that our kids and grandkids aren’t left with a bigger bill and to ensure we have a bigger buffer to withstand future global shocks.
“National’s fiscal plan includes costings for every election commitment, setting aside funding to deliver priorities such as extending paid parental leave to 30 weeks, the $1500 KiwiSaver Baby Boost and lower student loan repayments.
“It also reflects expected savings from reductions in foreign aid and welfare expenditure. The net fiscal impact of National’s election commitments, outside of health cost pressure funding, is $470 million on average per annum.
“Our fiscal plan also ensures that we invest in the frontline public services that Kiwis rely on.
“We have set aside a total of $15.4 billion for additional health investment over the next four years, which includes National’s medicines and bowel screening election commitments. That still leaves $7.5 billion for other cost pressures and new initiatives, including the usual yearly uplifts for areas like education and policing.
“National’s track record is strong. In each of our first three Budgets, National kept spending within the operating allowances we committed to in our 2023 fiscal plan.
“This plan is a continuation of the work we’ve done in government. After inheriting a very difficult set of books from Labour, where debt had tripled and government spending increased 70 per cent, National has been rebuilding the economy.
“We have fixed the basics by delivering income tax relief and controlling spending to ease pressure on inflation and interest rates. At the same time, we’ve been building a more secure future for New Zealand by creating opportunities for more growth through things like trade deals, Investment Boost, and planning reforms.
“Despite ongoing turmoil overseas, our plan is working. New Zealand’s economy is turning the corner and the hard work of households and businesses over the last three years is paying off.”
The latest forecasts show an operating surplus of $4.0 billion in 2028/29, growing to $11.7 billion in 2030/31. Net core Crown debt peaks at 43.9 per cent of GDP in 2027/28, then falls to 39.5 per cent by 2030/31. Wages are set to grow faster than prices and 220,000 new jobs are expected over the next four years.
“National is the party of low tax. We delivered income tax relief for working New Zealanders for the first time in 14 years and we are committing to no new taxes if re-elected. On the other hand, Labour and its coalition partners have proposed at least nine new taxes which will cost the average household $2263 a year.
“National’s approach has got us this far, but our plan needs three more years to bed in. That is how we help Kiwis secure their future.”
link to National's Fiscal Plan HERE
