Today's Budget Policy Statement effectively signals more cuts to public services in real terms in next year's Budget despite our ageing population and other challenges and is a fight that will define election year.
"Cuts to public services are not the answer to our economic woes," said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi.
"We will be taking the case to New Zealand in the election year that much greater investment, not further cuts, is needed in public services.
"The Government has already done enormous damage with dangerous cuts across the public sector - including axing the science capability that would have driven innovation and improved productivity.
"Just $1 billion is available for new spending in Budget 2026, that won't be enough to meet rising costs so services will inevitably suffer. It's the only way government departments can make ends meet.
"Bottom line, we can't afford more cuts. New Zealanders are already feeling the impact of reduced services while demands are growing. It's little wonder so many Kiwis are leaving for better lives overseas.
"Finance Minister Nicola Willis says funding for health will be a priority in the next Budget, but we know that just won't meet the needs of a system under severe strain already.
"This is about choices. The Government chose to give away $20 billion in income tax cuts, and handouts to landlords, big tobacco and business. These were the wrong choices.
"It should be pursuing tax reform to properly fund the services New Zealanders need and deserve.
"Instead, the Government is choosing austerity that will leave us less able to deal with an ageing and growing population, climate change, and our infrastructure deficit.
"Budget 2026 will sadly be more of the same; more short-sighted decisions that will have long-term consequences for the country's ability to meet critical challenges.
"The PSA will be resisting any further cuts and reminding voters that in this critical election year in 2026, they will have a clear choice."
