The Daily Examiner.
Budget 2025 has been unveiled, with Prime Minister Christopher Luxon emphasizing its focus on economic growth, job creation, and helping Kiwis get ahead.
The government is touting its economic plan as successful, citing a drop in inflation from 7.3% to 2.5% and falling mortgage interest rates. Treasury forecasts predict 2.7% annual economic growth, 240,000 new jobs, and wages growing faster than inflation.
- Investment Boost: A 20% immediate tax deduction for tradies, farmers, and small business owners investing in new machinery and tools.
- Infrastructure Growth: Funding for roads, schools, hospitals, and tourism expansion.
- KiwiSaver Enhancements: Higher employer and employee contributions.
- Cost-of-Living Support: Increased Working for Families payments, rates rebates for SuperGold Card holders, and extended prescription durations.
- Frontline Services: More maths teachers, hospital upgrades, urgent medical care access, and police funding.
While the government is framing the budget as responsible and growth-focused, reactions have been mixed. Labour has criticized it as an “austerity budget” that disproportionately affects women, arguing that $11 billion that could have gone toward pay equity has been redirected elsewhere. Scientists have also expressed frustration, calling the budget “an insult” due to cuts in frontline research funding.
Despite the government’s optimism, concerns remain about pay equity changes, KiwiSaver adjustments, and tight spending constraints. Some analysts warn that while the budget aims for long-term economic stability, short-term hardships may arise for certain groups.
It’s a budget that prioritizes economic discipline, but whether it delivers on its promises will depend on execution and public reception. What are your thoughts on it?
