Labour has released their fiscal strategy for the election, promising to get back to surplus by 2029/30, slash debt and set up an independent Parliamentary Budget Office, if elected.

Leader Chris Hipkins said his party would "get the books back into shape", but would not do it by "making life harder" and cutting services.

"New Zealand should be a country where hard work gets you somewhere. Where you can get ahead, put down roots and know your kids will have opportunities here.

"We'll invest in the things that make New Zealand stronger - our hospitals and schools, infrastructure, skills and the businesses that create jobs" Hipkins said.

Labour's fiscal strategy has six policies:

  • Achieve a surplus by 2029/30 and keep a sustainable fiscal position over the forecast period. Labour return to using the original OBEGAL (Operating Balance Before Gains and Losses) indicator and ditch the OBEGALx measure introduced by Finance Minister Nicola Willis.
  • Aim to reduce net debt down to 20 percent of GDP over time and investment in initiatives that support a growing economy.
  • Keep core Crown Expenditure and revenue at around 33 percent of GDP when their capital gains tax is fully implemented.
  • Set up an independent Parliamentary Budget Office to scrutinise government finances and election commitments.
  • Give the Reserve Bank it's dual mandate back, making so it must consider price stability and maximum sustainable employment.
  • And, bring back wellbeing reporting to so decisions take into account the impact on New Zealanders.

Finance and economy spokesperson Barbara Edmonds said the plan would balance the books and bring down debt, while giving New Zealand the "capacity to invest in its future".

"Labour will return the books to surplus by 2029/30 and reduce net debt over time but we won't do that by cutting the foundations of our economy."

"Under National unemployment is at an 11-year high, business liquidations are up 71 percent, homelessness and KiwiSaver hardship withdrawals are at record levels, and public services are under pressure - that isn't economic success," Edmonds said.

It comes two weeks after the National Party released its own so-called Budget Responsibility Rules which Finance spokesperson Nicola Willis described as "fiscal guard-rails" and leader Christopher Luxon said would protect the country against economic shocks.

National said it would return to surplus in 2028/29 - under its OBEGALx formula - but would hit surplus the same year as Labour is projecting under the OBEGAL measure.

National would also keep Crown expenditure down towards 30 percent of GDP and get debt down to below 40 percent of GDP.