New Zealand trims new spending, sticks to surplus path amid uncertainty

WELLINGTON - New Zealand Prime Minister Christopher Luxon said on Wednesday that global uncertainties from the Middle East conflict reinforced the need for responsible economic management and fiscal discipline.

"We can't control the storm, but we can secure New Zealand's future within it," Luxon said in a speech ahead of the national budget due at the end of the month.

Luxon said the government remained committed to returning the budget to surplus by the fiscal year ending in June 2029 and putting debt on a downward path toward 40% of gross domestic product.

Net operating spending on new initiatives will total NZ$2.1 billion ($1.25 billion), about NZ$300 million less than earmarked in December.

($1 = 1.6801 New Zealand dollars)

(Reporting by Lucy Craymer in Wellington and Renju Jose in Sydney; Editing by Christian Schmollinger)

Copyright Reuters or USA Today Network via Reuters Connect.

This story was originally published May 12, 2026 at 9:12 PM.