Budget 2026: More Cuts The Wrong Remedy For Struggling Economy – PSA

Finance Minister Nicola Willis’s promise of more cost cutting in Budget 2026 on 28 May shows the Government has learned nothing from the damage its slash-and-burn approach has already inflicted on the economy and public services.

“You can’t cut your way to prosperity – yet this Government keeps doubling down on the same failed prescription that’s already left New Zealand worse off,” said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.

“Cutting costs and jobs is the wrong remedy to turn the economy around. What we need is smart investment in the people and services that drive productivity and help New Zealand face its biggest challenges.

“The Government’s short-term, reckless approach ignores the long-term consequences for a nation grappling with an ageing population, climate change, and a massive infrastructure deficit.

“We’ve already seen the results of this Government’s priorities: talented people like scientists fleeing to Australia, critical services failing, and agencies unable to deliver what New Zealanders need.

“The constant IT outages at our hospitals are a stark reminder of what happens when you underfund the health system and cut the jobs of experts.

“More of the same will only make things worse. New Zealand deserves better than a government that treats cost cutting as the answer to every problem.

“The PSA will be campaigning strongly against more damaging cuts, reminding New Zealanders that they have a choice come the election on 7 November. The Government must step off this dangerous path.”