The New Zealand Government ran a $12.9 billion deficit in the year ended June 2024, as revenue growth was outpaced by increased spending. In a summary of the financial statements, Treasury said total revenue had increased by $14.3 billion during the year despite the softening economy. This was the largest annual deficit since the pandemic in 2020, both in nominal terms and as a percentage of the economy. Besides covid, New Zealand last ran a bigger deficit after the Global Financial Crisis and Christchurch earthquakes. While Willis didn’t get to set this budget, she took office halfway through the year and made policy changes which improved the OBEGAL balance by $1.1 billion.

Source: New Zealand Herald October 10, 2024 03:25 UTC