New Zealand Boosts Investment in Key Sectors Amid Global Market Uncertainty

New Zealand Prime Minister Christopher Luxon announced an intention to increase capital expenditure in the upcoming budget, setting the total at NZ$4 billion. This move aims to enhance investments in vital sectors such as health, education, defence, and transport.

Despite the broader capital infusion, Finance Minister Nicola Willis disclosed a reduction in baseline spending to NZ$1.3 billion, marking the smallest operating allowance in a decade to maintain a forecasted operating surplus. This ensures budget stability despite keeping the accident health provider out of financial calculations.

Amid global trade tensions and volatile financial markets, Luxon emphasized the challenging international landscape affecting growth forecasts. The government remains committed to bolstering frontline services for New Zealanders deserving better quality.

(With inputs from agencies.)