Source: New Zealand Government
Prime Minister Christopher Luxon says Budget 2024 delivers on the Government’s promises, with savings across the public sector being reinvested in frontline services and meaningful tax reductions to support hard-working Kiwis.
“This Budget is prudent and fiscally responsible. By identifying billions of dollars of lower-value spending across the public sector, we have both been able to deliver meaningful tax relief to support Kiwis with the cost of living and invest in key frontline services like healthcare, schools, and the Police,” says Mr Luxon.
“Too many Kiwis have gone backwards in recent years. Even as wages have struggled to keep pace with inflation, Kiwis have been dragged into higher and higher tax brackets. Budget 2024 delivers the tax relief we promised.
“The tax package in Budget 2024 is fully funded from savings and other revenue measures – meaning it will not add to debt and inflation. But it will allow hard-working New Zealanders to keep more of what they earn. Tax relief will give the average income household up to $102 per fortnight, plus FamilyBoost childcare payments of up to $150 for eligible families.
“Budget 2024 also delivers a significant funding boost for the health system and targeted new investment in other essential frontline services including education and law and order.
“Under my Government, Budgets will no longer be about how much money we spend, but about what is delivered for Kiwis. Budget 2024 stops low-value spending and re-deploys that money where it will be used best – whether that’s in our hospitals, our schools or our Police. We are resolutely focused on frontline service delivery.
“This Budget is a critical step in our Government’s plan to rebuild the economy – but it is only one step of many. It is only through a strong economy we can solve the cost-of-living crisis, lift incomes and afford the public services Kiwis deserve.
“Part of that plan is getting the Government’s books back in order. The savings we have identified mean we are on track for surplus in 2027/28.
“I am proud that this Budget delivers on the commitments we made to New Zealanders. By finding savings, funding the frontline, and delivering tax relief we have done exactly what we said we would do.”
