Meanwhile austerity continues to be the go in New Zealand, as AAP reports:
New Zealanders have been told to expect cuts and not a “lolly scramble” in next month’s budget, as the coalition government slashes its own allowance in order to meet its goal of returning to surplus in 2028.
Like many nations, New Zealand is struggling with a debt blowout due to COVID-era support spending.
Worsening the state of government books, New Zealand is also battling an economic recovery from a tough recession in 2024, with rising unemployment.
In that context, Finance Minister Nicola Willis has pledged to reduce her operating allowance in the May 22 budget to $NZ1.3 billion ($A1.2 billion), down from $NZ2.4 billion ($A2.2 billion).
“We will be spending billions less over the forecast period than would have otherwise been the case,” she said in a speech in Wellington on Tuesday.
“This will reduce the amount of extra borrowing our country needs to do over the next few years and it will keep us on track towards balanced books and debt reduction.”
Why the cuts? Well the conservative government has promised a return to surplus and an increase in defence spending. So what gets cut? Public services.
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