Wellington
The New Zealand government is embarking on a significant economic repair initiative to address the country’s fragile economy, announced Finance Minister Nicola Willis on Wednesday. This repair effort aims to provide relief from the high cost of living and restore responsibility to public finance management. The decision to implement the repair plan follows the release of the latest half-year economic and fiscal update, which underscores challenges such as persistently high inflation, elevated interest rates, and reduced economic output, as highlighted by the Minister. In response to these financial challenges and fiscal risks, the government has introduced a mini-Budget outlining immediate measures to strengthen the country’s economy, repair public finances, and provide relief for the cost of living. The mini-Budget marks a departure from six years of economic mismanagement, signaling a new chapter for New Zealand’s economy, according to Willis. As part of the plan, the Minister announced tax and benefit changes, along with a commitment to deliver additional income tax relief in Budget 2024.
