New Zealand: Luxon Announces Boost to Capital Spending

New Zealand: Luxon Announces Boost to Capital Spending
Above: Christopher Luxon makes a pre-budget speech to BusinessNZ at the Pullman Hotel on May 8, 2025. Image copyright: Phil Walter/Staff/Getty Images News via Getty Images

The Spin

Pro-government narrative

The government's policy has paved the path for New Zealand's future. The capital investment will ensure that New Zealand businesses get the support they need and taxpayers get the services they deserve. At the same time, the reduced operating allowance will help manage the country's debts at a troubled time globally and support New Zealand's ambitions to reach a budgetary surplus in 2029.

Opposition narrative

Budget 2025 will be built upon a fundamental injustice to New Zealand's women. For the sake of cold, hard cash, the Luxon government has shamelessly gutted the pay equity regime that many tens of thousands of women were relying on to receive their fair share for their hard work. And given the small operating allowance and few savings this will generate, this government will no doubt implement further callous cuts to public services regardless.


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