ACT Leader David Seymour is welcoming confirmation that Budget 2026 will spend less new money than previously planned, while keeping New Zealand on track to return to surplus by 2028/29.

“Spending less new money means less debt. It means Kiwis will keep more of what they earn, so life is more affordable,” says Mr Seymour.

“The Prime Minister has confirmed net operating spending on new initiatives will be $2.1 billion, about $300 million less than the allowance set in December. That is $300 million less pressure on taxpayers, less pressure on the cost of living, and less pressure on future generations.

“Debt is not free money. It is taxation by time travel. Politicians spend today and send the bill to children who are still learning their ABCs.

“New Zealanders are already paying dearly for past borrowing. Core Crown finance costs were forecast at $8.8 billion this year. We’re spending about $4,300 per household, just to pay the interest on government debt. This buys no hospital bed, teaches no child, and fixes no road.

“That is why ACT remains focused on returning to surplus and putting debt on a downward track. A small country in a volatile world needs buffers. Continuing to borrow, as Labour would do, will only make us more vulnerable to the next big shock.

“ACT has pushed hard for fiscal discipline across government. We have helped save billions, reprioritise spending, and focus taxpayers’ money on the essentials.

“The alternative is more borrowing or higher taxes. ACT rejects both. New Zealand does not need a capital gains tax, wealth tax, inheritance tax, or any other envy tax. We need a Government that spends less, regulates better, and leaves more money with the firms, farms, and families who earned it.”

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