Labour promises surplus in 2029/30, will restore Reserve Bank dual mandate
The New Zealand Labour Party has pledged to return to a budget surplus by 2029/30 and restore the Reserve Bank's dual mandate to include employment levels. The party also plans to reintroduce wellbeing reporting to assess the country's economic health beyond traditional metrics.
Why it matters
These policy proposals represent a significant shift in fiscal and monetary strategy, contrasting with the current government's focus on inflation-only mandates and different accounting measures.
Labour is promising a return to surplus in the 2029/30 financial year while also pledging to restore the Reserve Bank’s dual mandate so employment levels are considered in monetary policy decisions.
In the party’s fiscal strategy released this morning, Labour says it can balance the books by 2029/30 under the original OBEGAL (operating balance before gains and losses) measure, which includes ACC deficits. This year’s Budget, under that measure, forecasts a surplus being achieved in 2029/30.
The current Government instead uses the OBEGALx measure, which strips out ACC. The Budget forecasts a surplus a year earlier in 2028/29, which National has promised to achieve if re-elected.
“We will return to a positive operating balance while still investing in the people, services, and infrastructure New Zealand needs,” Labour’s strategy document reads.
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