Measures that will likely be in Budget 2023

March 27, 2023

Finance Minister Grant Robertson recently announced the release date of Budget 2023 (18 May 2023), saying it will provide solutions to some of the key challenges that New Zealand is currently facing. Read on to learn more.

Cyclone recovery efforts

Wild weather events have left parts of the country with severe damages and flooding. Alongside the already heavy human cost, this will also require a significant amount of money to fix. Minister Robertson said that the Budget will allocate resources to rebuilding the broken infrastructure, as well as supporting affected families, farmers, and businesses.

At the moment, the full economic and fiscal impact of Cyclone Gabrielle is not known. What’s expected is that the recovery process will take a long time, and will require a concerted effort from central Government and local communities. “This will affect the Government’s operating and capital spending plans in the current year and subsequent years and is being factored into planning for Budget 2023,” said Robertson.

Focus on cost of living

According to the Minister, the Budget will address the rising cost of living head-on. The new measures will add to the already extended fuel tax reductions and half-priced public transport fares until the end of June. “We will be considering further support to lighten [New Zealanders’] load,” Robertson added.

Talking about the impact of the Budget 2023 measures, the Minister warned that the global environment is still volatile and uncertain, which may affect the budget’s prospects. But he also pointed out that books are in good shape and the country is well-positioned to handle any economic shocks.

Investment in public services and climate change

Alongside inflation and cyclone recovery, the Government plans to include investments in public services like hospitals, schools, and housing. Plus, there will be measures to continue to address the impact of climate change, and in particular adaptation to extreme weather events like the ones we’ve experienced this year.

Click here to read Minister Robertson’s full statement.

The information contained in this publication is intended for general guidance and information only. It has not been personally prepared for you. Therefore, you should not act on this information if you have not considered the appropriateness of this information to your personal objectives, financial situation and needs. You should consult with us before making any investment decision. Historical market performance may not be indicative of future market performance.