New Zealand: public finances

What is New Zealand's budget deficit?

New Zealand's operating balance before gains and losses excluding ACC (OBEGALx) was a deficit of $8.7 billion, or 1.9% of GDP, in the year ended 30 June 2026, according to the Treasury's Financial Statements of the Government, published in October 2026. That compares with $9.3 billion (2.1% of GDP) the year before and an $11.9 billion deficit forecast in Budget 2026.

OBEGALx is the government's headline measure of its day-to-day balance. It leaves out investment gains and losses and the Accident Compensation Corporation. The government's stated short-term intention is to return to an OBEGALx surplus by 2028/29.

Official sources: Treasury: Financial Statements of the Government, year ended 30 June 2026 (PDF)

What is New Zealand's government debt?

New Zealand's net core Crown debt was $186.8 billion, or 40.9% of GDP, at 30 June 2026, according to the Treasury's Financial Statements of the Government. It rose $4.6 billion over the year, but fell as a share of GDP from 41.8% at 30 June 2025.

Net core Crown debt is borrowing by the core government less its financial assets, and excludes the NZ Super Fund and Crown entities. The government's short-term intention is to put it on a downward path towards 40% of GDP. Net worth, the government's total assets minus liabilities, was $188.4 billion.

Official sources: Treasury: Financial Statements of the Government, year ended 30 June 2026 (PDF)

How much tax does New Zealand collect?

New Zealand's core Crown tax revenue was $125.9 billion in the year ended 30 June 2026, up 3.4% from $121.7 billion the year before, according to the Treasury's Financial Statements of the Government. It was 27.6% of GDP, compared with 27.9% in 2024/25.

Tax revenue includes income tax deducted from wages, GST, company tax and other taxes, collected mainly by Inland Revenue. The Treasury notes that tax as a share of GDP has stayed around 28% in recent years. Resident withholding tax on interest fell as deposit interest rates declined.

Official sources: Treasury: Financial Statements of the Government, year ended 30 June 2026 (PDF)

What does the New Zealand government spend money on?

Social security and welfare was the largest area of core Crown spending in New Zealand in the year ended 30 June 2026, at $50.4 billion, followed by health at $32.9 billion and education at $21.2 billion, according to the Treasury's Financial Statements of the Government. Total core Crown expenses were $146.3 billion, 32.0% of GDP.

Social security and welfare includes New Zealand Superannuation, which is paid to everyone aged 65 and over who meets residence rules, as well as benefits and other support. Health spending rose from $30.3 billion the year before.

Official sources: Treasury: Financial Statements of the Government, year ended 30 June 2026 (PDF)

Did the New Zealand government make a surplus in 2025/26?

New Zealand's total operating balance, which includes investment gains and losses, was a surplus of $1.1 billion in the year ended 30 June 2026, a $5.5 billion improvement on the $4.4 billion deficit the year before, according to the Treasury's Financial Statements of the Government. The headline OBEGALx measure, which excludes these gains and losses, was still a deficit of $8.7 billion.

The difference reflects gains on the government's investments, such as the NZ Super Fund, which can swing widely from year to year with financial markets. The Treasury uses OBEGALx to judge underlying fiscal performance for this reason.

Official sources: Treasury: Financial Statements of the Government, year ended 30 June 2026 (PDF)

What is New Zealand's government debt?

The IMF puts general government gross debt in New Zealand at 54.7% of GDP in 2025. It is the top of the series, which starts in 2005. East Asia & Pacific median: 45.0% of GDP; New Zealand is 9th highest of 29. Worldwide: 88th of 185.

What is New Zealand's budget deficit?

According to the IMF, general government net lending or borrowing in New Zealand was -4.0% of GDP in 2025, which is a deficit. The peak was 5.1% of GDP in 2005 and the low -5.5% of GDP in 2010. It is 23rd highest of 29 in East Asia & Pacific, where the median is -1.7% of GDP. Worldwide: 130th of 188.

What is New Zealand's government revenue?

The IMF puts general government revenue in New Zealand at 37.6% of GDP in 2025. Since 2005 it has ranged from 36.3% of GDP (2019) to 42.4% of GDP (2006). East Asia & Pacific median: 33.6% of GDP; New Zealand is 11th highest of 29. World rank, highest first: 51st of 187.

How big is New Zealand's government spending as a share of GDP?

In 2025, general government spending in New Zealand was 41.5% of GDP, according to the IMF. The peak was 42.9% of GDP in 2010 and the low 35.6% of GDP in 2017. Across East Asia & Pacific the middle value was 32.9% of GDP, and New Zealand placed 10th highest of 29. Of 186 countries with 2025 data, 47th highest.

What is tax revenue in New Zealand?

The IMF puts central government tax revenue in New Zealand at 29.5% of GDP in 2024. Since 2005 it has ranged from 25.6% of GDP (2011) to 32.0% of GDP (2006). East Asia & Pacific median: 15.4% of GDP; New Zealand is 1st highest of 12. World rank, highest first: 4th of 92.

What is New Zealand's defence spending?

SIPRI puts military spending in New Zealand at 1.1% of GDP in 2025. Its high point since 2005 was 2020, at 1.3% of GDP; its low point was 2015, at 1.0% of GDP. East Asia & Pacific median: 1.4% of GDP; New Zealand is 11th highest of 16. Of 149 countries with 2025 data, 101st highest.