The National led government has announced its 2024 Budget, highlighting significant tax cuts as part of the “Back Pocket Boost” campaign promise.
Finance Minister Nicola Willis, unveiling her first Budget, emphasized that the $15 billion tax cut package will be funded over four years by $23 billion in savings from the public sector.
The Budget includes $2.57 billion in tax cuts through bracket adjustments and changes to the Independent Earner Tax Credit, benefiting about 1.9 million households by an average of $30 per week. Households with children will see an average benefit of $39 per week, while minimum wage workers will get about $12.50 per week.
Despite some economists’ calls to scale back the tax relief, Willis defended the decision, stating that it fulfilled the government’s commitment to New Zealanders. The government plans to borrow an additional $12 billion over the next four years to support these initiatives.
Significant investments are also being made in various sectors. Education will receive $1.01 billion, including $1.48 billion over four years for school properties and $199.5 million for school operating grants. Health NZ Te Whatu Ora is set to get $16.68 billion in new funding, with $3.44 billion for hospital and specialist services and $2.12 billion for primary and community health.
The Budget also addresses transport infrastructure, allocating $1 billion over four years to accelerate road projects and $939.3 million to repair roads damaged by recent weather events. Justice, police, and defense sectors will receive $651 million over four years to support frontline services and extend rehabilitation programs.
While the Budget aims to fulfill coalition promises and address New Zealand’s economic challenges, Minister Willis acknowledged that more work is needed to fully resolve the country’s financial issues. The government’s approach reflects a focus on careful management and strategic investments to foster long-term growth and stability.
