Budget 2025: Willis promises ‘no BS’, Luxon promises ‘relief’
Wednesday, 21 May 2025
Finance Minister Nicola Willis is promising a “no BS Budget” as Parliament readies for publication of the Government’s books.
“This week’s Budget is going to be a no BS [bullshit] Budget. I think New Zealanders had enough of people promising rainbows. That's not where we're at in the country,” Willis said.“We've been left with very little cash in the account … what I’m not promising to New Zealanders is that the Budget we deliver this week will make everything better. That would be an unrealistic commitment.”
Prime Minister Christopher Luxon said it would be a “growth Budget” that would bring “relief”.
“It's a growth Budget, and it's actually about ‒ it's the right Budget for the right time, and it's responsible, and I'm really excited about it.
“Outside the bubble of Wellington, the people out there want relief, they want economic growth, that's what they're going to get.”
Already, the Government has announced more than $5 billion in new Budget spending for the coming four years. That is despite the Government cutting its operating allowance, or planned new spending, from $2.4b to $1.3b ‒ meaning cuts and prioritisations would be required.
Another pre-Budget announcement came on Tuesday morning, when Rail Minister Winston Peters and Transport Minister Chris Bishop announced more than $600 million allocated to improve both the freight and Auckland and Wellington metro rail networks ‒ funding needed for the final stages of a three-year railway improvement plan.
A list of the pre-Budget spending announcements is outlined below.
Willis said the “vast majority” of initiatives in the Budget would be funded through billions in savings.
Among the savings forecast in the Budget will be billions of dollars that was intended to go towards pay equity claims, which the Government hastily overhauled earlier this month, to considerable outcry.
“We simply wouldn't have been able to fund the initiatives in our Budget without the savings programme that we've conducted,” Willis said.
“The challenge for those who opposed the savings in the Budget will be to explain how they would have funded the new initiatives that we're doing.
“Probably the answer to that question, if they're honest, is piling new taxes on our economy, which would put our economic recovery firmly at risk.“
Both Willis and Luxon sought to tie Labour to the Green Party alternative budget, published last week, which promised $88b in taxes to pay for for free GP visits, dental care and early childhood education among other initiatives.
Also, Willis issued a press statement decrying Hipkins for a claimed refusal to commit to a 50% debt ceiling, though Labour finance spokesperson Barbara Edmonds maintained its support for the cap.
Labour, in turn, issued a statement declaring the beginning of a search for the “rare family” receiving a $250 a fortnight in tax relief promised by the Government at the last Budget.
“It’s time Nicola Willis got her binoculars out … People who received it appear to be rarer than the little spotted Kiwi, the fairy tern, new ferries, or Nicola Willis answering a question without blaming Labour,” Edmonds said, in a statement.
Hipkins said on Tuesday that Willis promising a “no BS” Budget meant there was “probably not going to be much in it that's going to give New Zealanders hope”.
“The cuts they've already made are ones that concern me greatly. I mean cutting billions of dollars out of pay equity settlements, which are going to disproportionately affect the lowest-paid woman in New Zealand, I think, is a sign that the Government's priorities are all wrong.”
He said the party was yet to make “a call” on the debt ceiling, and Edmonds was restating Labour’s prior position.
Edmonds was clearly was referring to the current fiscal rules when talking earlier to The Post about the coming Budget.
Budget spending already announced
$700m - $900m for phase one of redeveloping Christchurch Men’s Prison.
$53m for paying teachers’ registration fees.
$957m in new operational spending for Defence. Not yet known is how much will be allocated for promised maritime helicopters in this Budget, but a $2b total for operational and capital spending has been given.
$100m for additional maths support for students.
$774m for state abuse survivors redress.
$6m ($1.5m baseline increase) for Māori wardens.
$35m for Customs to tackle drug smuggling.
$100m for the Elevate venture capital fund.
$140m for reducing school truancy.
$275m for the Social Investment Fund.
$577m for the International Screen Production Rebate scheme.
$164m to expand urgent and after-hours healthcare.
$604m for railway upgrades.