Tax Cuts Meet Services Cuts in NZ Coalition’s First Budget

Finance Minister Nicola Willis has delivered a $14.7 billion tax cut package, but economic forecasts are bad and further cuts to services are planned.

(L-R) Prime Minister Christopher Luxon, Associate Minister of Finance Chris Bishop, Minister of Finance Nicola Willis, ACT leader David Seymour and Deputy Prime Minister and NZ First Leader Winston Peters make their way to the house during budget day 2024 at Parliament in Wellington, New Zealand, on May 30, 2024. Hagen Hopkins/Getty Images

New Zealand’s Finance Minister Nicola Willis has delivered her first budget amidst nationwide protests against the effects of the government’s policies on Māori. She has kept the National Party’s pre-election pledge of across-the-board tax cuts with a package that will cost $14.7 billion (US$9 billion).

While National had campaigned on fiscal restraint, Ms. Willis has gone further than expected.