Wellbeing Budget 2021

Our Recovery

A balanced fiscal strategy

The Government's investments and fiscal management have supported the economy and wellbeing of New Zealanders throughout COVID-19

The COVID-19 pandemic has caused a 1-in-100-year global economic shock and ongoing international volatility. Governments around the world have used their balance sheets to invest to address the health and economic impacts of the pandemic. Investment has caused forecast net debt to rise above 100 percent of GDP in many of countries we compare ourselves to, and has created ongoing operating deficits.

Our careful economic management before COVID-19 meant we had a stronger starting position than other countries because we ran surpluses and reduced debt. This put us in a position to go hard and early with our health and economic response to protect lives and livelihoods.

Against the backdrop of global uncertainty, the Government's fiscal position gives New Zealand options. Relatively low debt means a greater ability to continue the Labour Government's record infrastructure investment plans to boost productivity, create jobs and secure the recovery. Careful and targeted spending decisions mean we can prioritise investments that will support all New Zealanders as the economy recovers from COVID-19.

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