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13.05.202602:18:56UTC+00New Zealand 2026 Budget Eyes Surplus Path, Infrastructure Push

New Zealand will curb routine operating expenditure in its 2026 budget while increasing capital investment to bolster infrastructure, defence, and energy resilience, Prime Minister Christopher Luxon said Wednesday. The strategy represents a shift toward fiscal consolidation paired with investment in critical assets, against a backdrop of subdued economic growth, aging infrastructure, and heightened geopolitical risk. The government aims to return the budget to surplus, excluding the state accident insurer, by the 2028/29 fiscal year. Luxon said “fiscal repair balanced with careful capital investment” would be the guiding principle of the budget, and reaffirmed a commitment to reduce debt toward 40% of GDP. He added that New Zealand can no longer rely solely on its geography, international alliances, or renewable energy to buffer global shocks, reiterating that defence spending will increase to 2% of GDP.

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