WELLINGTON, May 22 (Xinhua) -- The New Zealand government released Budget 2025 on Thursday, calling it a responsible plan to boost economic recovery, tackle rising living costs, and strengthen essential services without raising taxes or borrowing more.
"The government's economic plan is working. By stopping wasteful spending, inflation is down from 7.3 percent to 2.5 percent and mortgage interest rates are falling," said Prime Minister Christopher Luxon.
After years of high inflation and economic slowdown, Treasury forecasts predict 240,000 new jobs, rising incomes, stable inflation, and balanced books over the next four years, said Finance Minister Nicola Willis.
Key initiatives include the Investment Boost, allowing tradies, farmers and small business owners to deduct 20 percent of the cost of new equipment from their taxable income. Other measures support the growth of infrastructure investment, tourism, foreign investment, start-ups, and KiwiSaver, a New Zealand savings scheme to help set up for retirement.
Cost of living support includes higher Working for Families payments for 142,000 families, rates rebates for seniors, and 12-month prescriptions to cut doctor visit costs, according to the new budget.
Budget 2025 also includes funding for more maths teachers, extra learning support for children, 1 billion New Zealand dollars (590 million U.S. dollars) in hospital upgrades, and improved access to urgent medical care and frontline police.
"Just like Kiwi households, we've had to make tough choices about what we spend money on. We are confident we have put Kiwis' hard-earned taxes where they will have the most impact," Luxon said.
The finance minister said Budget 2025 strikes a careful balance between making necessary investments now and implementing long-term reforms to protect New Zealand's economic recovery and future growth, describing it as a responsible plan to secure the country's future. ■