Finance Minister Nicola Willis says rising global economic uncertainty has underscored the importance of the Government’s fiscal consolidation programme, following Fitch Ratings’ decision to place New Zealand’s AA+ long-term credit rating on a negative outlook.
Willis said the move was “a reminder of why fiscal discipline is so important,” pointing to the Government’s approach over the past two years of increasing investment in frontline services such as health, education, and law and order while working toward a return to surplus. She said this strategy has required “hard decisions,” including $43 billion in savings across the last two Budgets, with further savings planned in Budget 2026.
Willis reaffirmed the Government’s commitment to its three fiscal goals: reducing spending as a proportion of GDP, returning the operating balance to surplus, and lowering debt over time. She noted Treasury’s preliminary forecasts — compiled before recent Middle East volatility — indicated economic recovery was gaining pace, with growth expected to reach around 3 percent by early 2027, supporting improved government revenue. However, she acknowledged those forecasts would now need revising due to energy market disruption, which she said adds “real uncertainty.”
Emphasising a “balanced approach,” Willis said the Government would continue prioritising core public services while maintaining prudent debt levels. She warned that increasing borrowing and spending, as proposed by some political opponents, would risk damaging New Zealand’s reputation for responsible fiscal management and could lead to higher borrowing costs for households.
So why is there a $40 million dollar slush fund set up to pay for Robbie Williams to play Chch? This is not fiscal anything..it needs to be stopped and that money put toward helping the people most in need in this country… however I have no faith whatso ever that Luxon and co will do that…when have they ever?
Nicola Willis demonstrated she is innumerate and financially illiterate in the same article.
National’s e;ection promise:
“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”
but the reality:
“Return to budget surplus delayed a year until 2030
Deficits forecast to be bigger because slow economic recovery
Growth forecast below 1 pct this year rising to more than 3 pct in 2027
Debt expected to peak later and higher
Finance Minister Willis says further spending discipline needed.”
Further spending discipline? Willis is borrowing more than Robertson!
But Willis doesn’t deserve all the blame, it is obvious Nicola Willis does not possess sufficient iq to understand what is going on.
Her associate Finance Minister David Seymour, and ex bluechip CEO leader Chris Luxon understand though.
Now ask yourself why Luxon, Seymour and Peters aren’t investigating the H Clark advised Ardern government’s $30b covid spend, which wasn’t spent on covid. That money certainly didn’t go towards road maintenance, prison costs, or infrastructure.
So why haven’t our esteemed ruling political party leaders asked IRD, GCSB, SFO, to investigate the largest tax payer fraud in NZ history including the $34m Gates mysteriously paid Ardern?
Could it be because these 3 gentlemen don’t want the next ruling party to investigate them?
NZ voters need a new honest centre right government who will purge enormous NZ political corruption and throw the perpetrators in jail. Only then will we be able to read a financial article without Helen Clark’s non-sensensical comments thrown in.
recovery? It’s just increase in inflation that is sold to the punter as recovery.
But nz sheeple have learnd nothing in school that would enable them to see through govt. propaganda.
They talk about the cost of everything but the value of nothing.