Reported 4 months ago
New Zealand's center-right government fulfilled its election promise by announcing tax cuts in its budget, despite facing larger deficits and a delayed return to surplus. The tax package, amounting to NZ$14.7 billion over four years, focuses on providing relief to low and middle-income households, particularly benefiting young families. This move comes as the Treasury Department projects a widening deficit of NZ$13.4 billion next year, with the budget not expected to reach a surplus until 2028. The government aims to offset the tax relief with savings and revenue initiatives to avoid additional borrowing and inflation pressure. Additionally, the budget includes spending cuts and job reductions in the public sector to address debt concerns and restore fiscal balance.
Source: YAHOO