Government Books Still Deep In The Red Despite Slight Improvement
The Government’s finances remain under pressure, with the latest Treasury figures showing New Zealand is still running a multi-billion-dollar operating deficit — although results are slightly better than forecast.
The Treasury today released the Interim Financial Statements of the Government of New Zealand for the nine months ended 31 March 2026, showing ongoing strain on Crown finances as the coalition Government battles rising costs, debt pressures, and weaker economic growth.
The Government’s main operating measure — known as OBEGALx, or the operating balance before gains and losses excluding ACC — remained in deficit for the nine-month period.
Treasury said the March results were measured against forecasts published in the Half Year Economic and Fiscal Update 2025 (HYEFU), released in December last year.
The latest figures continue a trend seen throughout the financial year, with Government revenue under pressure while spending remains elevated across health, infrastructure, social services, and debt servicing costs.
Net core Crown debt also remains historically high, reflecting the Government’s continued borrowing to fund operations and capital projects.
Finance Minister Nicola Willis has repeatedly defended the coalition Government’s fiscal strategy, arguing tighter spending controls and economic growth measures are needed to bring the books back toward surplus.
Treasury’s monthly financial statements provide a snapshot of the Government’s financial position, including revenue, expenses, assets, liabilities, and cash flow performance.
The release comes as political pressure grows over the cost of living, public sector spending, and the Government’s broader economic management ahead of Budget 2026.
Economists say while some indicators have improved compared with forecasts, New Zealand’s fiscal position remains fragile amid global economic uncertainty and slowing domestic growth.
#RadioWaatea #NZPolitics #Economy #NicolaWillis #NZTreasury #GovernmentDebt #Budget2026 #CostOfLiving #Aotearoa #NewZealand #FiscalUpdate #PoliticsNZ
