New Zealand Adapts Balanced Approach to Speed Up Economic Recovery
(MENAFN) New Zealand's government unveiled its Budget 2025 on Thursday, positioning it as a balanced approach to accelerate economic recovery, address rising living costs, and enhance essential services without resorting to higher taxes or increased borrowing.
"The government's economic plan is working. By stopping wasteful spending, inflation is down from 7.3 percent to 2.5 percent and mortgage interest rates are falling," Prime Minister Christopher Luxon stated.
Following a period marked by high inflation and economic downturn, Treasury forecasts expect the creation of 240,000 new jobs, rising wages, stable inflation, and a balanced budget over the next four years, Finance Minister Nicola Willis explained.
Among the major initiatives is the Investment Boost, which enables tradespeople, farmers, and small business owners to deduct 20 percent of new equipment costs from their taxable income. Other provisions focus on bolstering infrastructure investments, tourism, foreign investment, start-ups, and KiwiSaver, a New Zealand retirement savings plan.
To assist with the cost of living, the budget provides increased Working for Families payments to 142,000 families, property tax rebates for seniors, and 12-month prescriptions to lower healthcare expenses, according to the budget announcement.
Additionally, Budget 2025 includes funding for more math teachers, additional support for students with learning needs, NZ$1 billion (about US$590 million) for hospital improvements, and better access to emergency medical care and frontline police services.
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