Decoding the New Zealand Budget 2023/24: Getting started
Government budgets are like the strategic heartbeat of a nation. They lay out the plans and priorities of a Government, translating political ideologies and socio-economic needs into fiscal terms. In this sense, understanding a budget is key to understanding the future direction of a country.
That’s why it’s important that citizens not only have this information available, but they have it accessible. Without accessibility, there is a gaping hole in the trust bucket between people and government.
Kiwis are proud of the fact that we tie with Finland and Denmark for first place on Transparency International’s Corruption Perceptions Index. But dig a little deeper and you’ll find some disturbing facts. According to the 2021 OECD Trust Survey, just 45% of New Zealanders trust local government councillors, and 56% report that they trust the public service. These represent average figures across the OECD.
A key recommendation of the Drivers of Trust in Public Institutions in New Zealand report for the OECD in 2022 was to improve transparency and achieve meaningful engagement. No doubt, the Government is asking itself, “How?” Well, a good place to start is answering the question, “Where does the money go?” And perhaps more pointedly, “What’s in it for me?”
New Zealand's 2023/24 Budget was presented as per usual in May, illustrating the current Government’s priorities, economic predictions, and tactics for facing impending challenges and seizing potential opportunities in the fiscal year ahead. Before we suggest a better way to dig into the details, let’s start by identifying some key priorities based on the numbers.
Topping the list of this year's budget allocations are three major ticket items: Social Security and Welfare, Health, and Education. These sectors are set to receive $45,662,273,000, $27,758,042,000, and $20,790,582,000 respectively. The sheer magnitude of these figures is staggering, so let’s dig deeper on their high-level importance to New Zealand.
1 Social Security and Welfare's massive allocation reflects the Government's commitment to providing a safety net for the most vulnerable populations. It underscores the priority given to the socio-economic wellbeing of the nation's citizens, particularly in an era marked by economic uncertainty.
2 The substantial investment in Health signals the country's sustained effort to build a robust healthcare system, one that can respond effectively to immediate health crises and proactively promotes the overall health and wellbeing of its citizens.
3 The large allocation to Education represents New Zealand's ongoing commitment to investing in its future: equipping the next generation with the knowledge, skills, and opportunities they need to contribute effectively to society and the economy.
The numbers themselves don’t explain budgetary policy, or the challenges the country faces in these critical areas. But seeing how the numbers increase or decrease does explain the level of investment and therefore their importance.
Making sense of these large numbers and complex financial jargon is all too often relegated to the realm of the economist, data statistician or media commentator. That's why, in this blog series, we aim to demystify the New Zealand Budget and help you understand the fiscal plans that will shape the country's future.
Over the course of this blog series, we'll introduce and utilise Orbviz, our state-of-the-art tool designed to simplify complex financial data. Orbviz transforms these overwhelming budgetary numbers into an engaging, dynamic, and interactive visual narrative, making it easier for everyone, regardless of their financial literacy, to understand the budget.
This overview serves as the first step into a deeper dive into the New Zealand Budget 2023/24. Stay with us as we embark on this journey of understanding Government spending, one bubble at a time.