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2023 New Zealand budget

Budget 2023, titled "Support for today, Building for tomorrow", is the New Zealand budget for fiscal year 2023/24 presented to the House of Representatives by Finance Minister, Grant Robertson, on 18 May 2023 as the fifth budget presented by the Sixth Labour Government. The budget was released in the midst of rising living costs and recovery efforts following the 2023 Auckland Anniversary Weekend floods and Cyclone Gabrielle in January and February 2023.

Background
On 11 May 2023, Finance Minister Grant Robertson stated that the 2023 budget would focus on four overarching themes: supporting New Zealanders with cost of living, delivering services that New Zealanders rely on, recovery and resilience, and "fiscal sustainability." Prime Minister Chris Hipkins stated that the budget would focus on easing cost of living pressures while making targeted investments to promote economic growth. The budget was released amidst rising living costs and inflation, and the economic and social devastation caused by the 2023 Auckland Anniversary Weekend floods and Cyclone Gabrielle between January and February 2023. ==Major announcements==
Major announcements
Climate change • Allocating NZ$1.9b from the Climate Emergency Response Fund on emissions reductions and adaptation measures. Education • Investing NZ$3.6 billion in extra operating expenses and NZ$1.3 billion in capital expenditure. ==Responses==
Responses
Treasury In response, the New Zealand Treasury forecast that New Zealand would avoid a recession due to the rebuilding programme resulting from the Auckland floods and Cyclone Gabrielle. The Treasury also forecast that New Zealand's economy would not return to surplus for another year due to declining tax revenue and the Government's 2023 budget decisions. Political Prime Minister Chris Hipkins defended Finance Minister Grant Robertson's handling of the 2023 budget, arguing that it would help New Zealand avoid an inflation. He predicted that inflation would return to between 1–3 per cent by the end of 2024 and reiterated the Government's focus on preparing for future climate-related "extreme events." The opposition National Party leader Christopher Luxon accused the government of "wasteful spending," labelling the 2023 budget "the blowout budget." National also criticised the budget's cost-of-living measures including free public transport, free early childhood education, and removing the $5 prescription medicines co-payment. The budget received a mixed response from the Green Party. While the Greens welcomed several measures in the budget including public transport initiatives, and funding for early childhood education and warmer homes, Co-leader Marama Davidson criticised the budget for falling short on supporting people, addressing climate change, and implementing a wealth tax. Fellow Co-leader James Shaw welcomed the budget's NZ$1.4 billion on climate change mitigation and the expansion of the country's electric charger stations but opined that the budget could have done more on addressing climate change and child poverty. ACT Party leader David Seymour stated that the Government was "running out of other people's money and excuses." While Seymour welcomed the Budget's infrastructure funding and medicinal support measures, he said that he did not support the Budget's increased overall spending and deficit, claiming that it would lead to a ten percent mortgage rates increase by the end of the year. The budget also received a mixed response from Te Pāti Māori. Co-leader Debbie Ngarewa-Packer welcomed the funding boost to the Te Matatini kapahaka festival but said that the Budget still favoured the wealthy and failed to reduce the cost of food by removing the Goods and Services Tax. The Opportunities Party criticised the 2023 budget for not addressing unfairness in New Zealand's taxation system, insufficient investment in young people, insufficient investment in the community housing sector, and the lack of long-term infrastructural investment plan. Academics Economist Shamubeel Eaqub welcomed the budget's emphasis on infrastructure, stating that New Zealand has an infrastructure deficit of NZ$210 billion. Civil society groups Greenpeace Aotearoa New Zealand spokesperson Christine Rose criticised the 2023 budget for allegedly emphasizing corporate profit over addressing climate change and the cost of living. By contrast, Federated Farmers criticised the Government for not investing in the farming sector and imposing "impractical, unpragmatic, and unfair regulations" on the farming sector in the midst of rising operating costs. The New Zealand College of Midwives praised the increased health spending within the 2023 budget, particularly the five percent increase for midwives. The college called for a strategic approach to job retention for midwives. The Free Fares campaign praised the Government's decision to introduce free public transportation for under-13 year olds and half-price fares for under-25 year olds. However, it criticised the Government's decision not to extend half-price fares to older age groups. ==References==
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