WELLINGTON, May 13 (Xinhua) -- New Zealand's Prime Minister Christopher Luxon said Wednesday that the government will prioritize economic resilience, energy security and defense "in an increasingly volatile world."
Speaking to BusinessNZ ahead of Budget 2026 to be delivered on May 28 in Auckland, Luxon warned New Zealand can no longer rely on geographic isolation for security amid rising global instability.
The prime minister outlined the government's plans to strengthen energy security, secure trade ties across the Indo-Pacific, boost defence capability and maintain social cohesion, arguing that prosperity depends on security.
He also emphasized responsible economic management and fiscal discipline, confirming the government's goal of returning to a budget surplus by the 2028-29 fiscal year and reducing public debt to around 40 percent of GDP.
Net operating spending on new initiatives in the upcoming budget will be 2.1 billion NZ dollars (1.25 billion U.S. dollars), lower than earlier projections, Luxon said.
He said the government would continue investing in core sectors, including health, education, defence, law and order and infrastructure, while reprioritizing spending to avoid higher taxes or increased borrowing.
"Being able to withstand international shocks depends on the size of the buffers you have. Budget 2026 will help rebuild those buffers to restore New Zealand's financial security," he added. ■
