New Zealand Government Sees Earlier Return to Budget Surplus (1)

The New Zealand government will head into this year’s election facing a deeper budget deficit and weaker growth, but with the promise of an earlier return to surplus predicated on an economic recovery starting in 2027.

The operating balance is projected to return to surplus in the year ending June 2029, according to new Treasury Department forecasts released Thursday in Wellington as part of the annual budget. In previous projections in December, the surplus was expected in 2030.

Nicola Willis in Wellington on May 28.

Photographer: Mark Coote/Bloomberg

By cutting government spending, including taking the axe to thousands of public sector jobs over the next four years, Finance Minister ...