The Government has found almost $7.5 billion in savings, it revealed in today's 'mini-Budget'.
This comes from stopping a range of work the Labour government had underway.
That included Labour’s planned 20 hours early childhood education extension, where it will save $1.181 billion over four years.
Stopping Let’s Get Wellington Moving saves them $525m, and ending Labour’s half price fares for under 25s saves them $265m.
It will also redirect climate allocated funding, getting $647m back from the Government Investment in Decarbonising Industry (GIDI) fund.
It will also get uncommitted funding from the Climate Emergency Response Fund ($500m).
Tax and income changes include the expected indexation of main benefits to CPI, saving $676m over four years. This change will happen slightly later than expected though.
Removing the Commercial Buildings Depreciation will save $2.311b over four years.
Finance Minister Nicola Willis said today’s mini-Budget "sets out the immediate steps the coalition Government is taking to strengthen New Zealand’s economy, repair public finances and deliver cost-of-living relief".
It comes as Treasury warns of a slowing economy.
High migration is helping, but slowed spending and lower business revenue means the Government's tax take is reducing.
The Government is still expecting a surplus in 2026/27 but will be lower than predicted before the election.
Unemployment is expected to peak at 5.25% in 2025.
Inflation will be back in the 2% range in 2025.
Willis said: “New Zealand is grappling with a toxic trio of high and sticky inflation, high interest rates and reduced economic output."
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