New Zealand budget will help government for now

Significance

The coalition has been in office since October 2017 under Prime Minister Jacinda Ardern. This budget combines fiscal restraint with increased social, foreign affairs and aid spending and infrastructure investment. The government will produce two further budgets before its current term ends.

Impacts

• The budget will support Wellington’s efforts to increase its diplomatic presence in and aid to South Pacific island states.
• In increasing its diplomatic presence in the South Pacific, New Zealand will vie with China for influence, and try to combat climate change.
• Effective fiscal management will reinforce New Zealand’s financial capacity to manage environmental and economic difficulties.