Finance Minister Nicola Willis will deliver the government's Budget 2026 on Thursday.
It will be her third Budget, setting out how and where money will be spent over the next financial year.
Prime Minister Christopher Luxon said the Budget would be a "grown-up" one and free of any "lolly scramble".
Here is everything that has been announced so far:
Nearly 9000 public sector jobs to go, govt agencies to merge
The government announced plans to slash public service jobs by about 14% over the next three years in a shake-up it says will deliver $2.4 billion of savings.
The changes announced would result in about 8700 job losses by mid-2029.
There are currently just over 63,000 full-time public servants - a slight decrease under this coalition government of National, NZ First and ACT parties, from the high of approximately 65,000 in the 2024/25 year.
Willis outlined an overhaul of the public service designed to "reduce the number of government departments, increase the use of AI and other digital tools, and deliver significant savings".
PM signals more capital spending
The Prime Minister signalled more capital spending than expected in an annual pre-Budget speech.
Luxon addressed a need for cooperation with like-minded partners on defence and trade, and also drew attention to the need for energy independence.
He pointed to the government's responses to the fuel crisis, while noting "more action is required".
That could be delivered through changes to Budget allowances - with less operational spending at $2.1b, down from $2.4b; but more capital spending at $5.7b.
$1.6b investment for ageing maritime fleet and drones
The Defence Minister announced a $1.58b investment in maritime security.
Chris Penk said the government would invest in drone systems, ship maintenance and work to replace an ageing naval fleet.
The Budget would provide $700m to implement projects identified in the Defence Capability Plan, on top of an additional $880m of operating funding over the next four years - or $220m per annum.
Major social housing shake-up
The government announced a major shake-up of social housing beginning in this year's Budget - which will boost weekly support for 110,000 families by almost $15, but leave another 80,000 families worse off by $30 a week.
The change will be paired with more stringent criteria for getting a social house - and possibly new tenancy duration limits and regular check-ins.
Housing Minister Chris Bishop said it would make the social housing system fairer, better targeted and more focused on encouraging independence.
$212m to continue school lunch programme
The Healthy School Lunches programme has been funded for another year, with the government committing $212m towards an extension.
While the programme would remain as-is for 2027, the Associate Education Minister said it was likely changes would be made for 2028 and beyond.
In 2024, the government made significant changes to the programme, which had been started by the previous government, in order to cut down on costs.
$180m boost to healthcare in Otago Central Lakes
An expansion to Lakes District Hospital's emergency department in Queenstown will begin within months as part of a $180m boost to healthcare in the Otago Central Lakes area.
Health Minister Simeon Brown said Health New Zealand's board had agreed in principle to invest $128m in new operating funding over four years from July 2027 with another $52m invested in capital funding.
Health officials promised last year to assess long-standing inequities and develop a clinical services plan for the area, as residents were often travelling hours for basic care.
$131m on reading, writing and maths initiatives
The government will spend $131m on improving students' reading, writing and maths in this year's Budget, Education Minister Erica Stanford announced.
Another 12 initiatives as part of primary and intermediate school education reforms would boost achievement and close the equity gap, she said.
Fees-free university scheme axed
The government considered phasing out the fees-free tertiary education scheme but decided it was too complicated, opting instead to axe it in one go.
The policy which covers the cost of students' third year of tertiary study will be gone in Budget 2026.
The scheme was first introduced by the former Labour government in 2017 as a first-year fees-free scheme, beginning from 2018, before the current coalition shifted it to the final year from 2025.
Funding doubled for wilding pine control efforts
Funding for wilding pine control efforts will more than double under a Budget boost.
The government pledged an extra $79m for the National Wilding Conifer Control Programme over the next three years, taking its total spend over that time to $109m.
Customs unveils underwater tech to combat smugglers
Customs announced three new remotely-controlled underwater vehicles to combat smugglers coming in by sea.
The newly purchased equipment will be used to conduct checks below the water line, freeing up diving crews and targeting illicit smuggling.
Customs Minister Casey Costello said the $70m investment would be used to make sure they had the best tools, the best training, and the best strategic capability possible to meet the challenges.
Businesses to be offered loans to cut gas dependence
Businesses will be able to access cheaper loans to help reduce their dependence on gas as part of a new scheme.
The move was announced by ministers on Monday, along with a promise of a law change forcing the gas industry to provide better information on supply and demand.
Under the lending initiative, the government would guarantee 80% of eligible loans, allowing banks to offer lower interest rates to companies switching to alternative energy sources, such as electricity or bio energy.
Willis said the Budget would put aside $48m to cover potential losses, unlocking an estimated $1.2b in bank loans.
$35m boost for ambulance services
The government announced a funding boost for two new Auckland ambulance hubs, more staff, upgraded technology and stronger frontline support.
In a pre-Budget announcement in Auckland last Friday, Brown and Costello said they will provide $35m over four years in Budget 2026, to strengthen road ambulance services and deliver immediate improvements for patients and frontline staff.
$15.5m on palliative care for children
The government will spend $15.5m over four years to set up a national paediatric palliative care service.
The care would be delivered by dedicated specialist teams in both the North and South islands.
At the moment, Health NZ funds just one specialist paediatric palliative care physician based at Starship Children's Hospital in Auckland.
The new services would roll out from the middle of next year.
$100m on two new courthouses
Courts Minister Nicole McKee said $100m of the Budget will go towards two new courthouses in Rotorua.
One will be used for the High Court, District Court, Coroners Court and tribunals, and the other for the Rotorua Māori Land Court.
The government had already purchased land for the new building and was seeking resource consent, but until now there was no money to fund the build.
This story was first published on rnz.co.nz |  |
