Beyond GDP: New Zealand Finance Minister explains shift to budget based on wellbeing indicators

Finance Minister: “GDP remains an important measure of activity in the economy, but it doesn’t tell us about the quality of that activity”

  • Budget on 30 May is based on a new criteria for spending allocations which assesses performance based on wellbeing indicators
  • New Zealand has seen consistently high GDP growth coincide with mounting social problems, including a major homelessness crisis
  • Top five spending priorities of new Budget include supporting businesses to reduce emissions, improving life chances of indigenous communities, addressing family violence and tackling mental health issues
  • Budget still operates within tight fiscal rules, with a budget surplus and falling debt to GDP levels predicted

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