Recent release of Gross Domestic Product (GDP) figures reflects concerns I have been hearing from New Zealanders of all backgrounds.
Gross Domestic Product (GDP) measures the financial value of final goods and services—that is, those that are bought by the final user in a country in each period. It counts all the output generated within the borders of a country.
New Zealand’s GDP numbers paint a gloomy picture, indicating we are amid a serious economic slump.

I am sure this is not breaking news to any of you. We have all been feeling the effects of this downturn in your everyday life.
I have personally seen redundancies of highly skilled engineers and chartered accountants within my family and friends’ circles as employers struggle to be financially sustainable.

As Kiwis, we have responded to the escalating costs of living, borrowing, and conducting business with commendable responsibility.

Many of us have chosen to forgo significant purchases and risky investments, opting instead to focus on diligently managing our debts. It is about carefully navigating our bills, taking opportunities for savings at the grocery store, and analysing our utility expenses.Just as we analyse our expenses, fortunately for us, we have a government that thinks like every day New Zealanders. Our government is now stepping into the same realm where you and your family have been treading cautiously. For too long, those in Wellington have attempted to disregard fiscal prudence, attempting to spend their way out of rising interest rates. But here is the reality: such tactics can only be sustained by squeezing hardworking taxpayers like you and me, or by burdening future generations with hefty debts.

Let us face it; this approach is not sustainable, nor is it responsible. It is certainly not fair to households that have already made significant sacrifices to keep their heads above water. So, it is no surprise that there is a lot of chatter about the Government tightening its belt and pursuing savings.

And I am sure Indian New Zealanders who live by the motto of ‘spread as many legs as there are sheets’ will understand the need to pursue savings, cut wasteful spending, and tighten our government’s belt where most needed as we grapple with some unpleasant surprises left behind by the previous administration. Take Pharmac, for example. The previous government left life-saving medications unfunded for the next four years. And in Education, they introduced the free school lunch program without allocating a budget for it. These are just two instances, but similar oversights have penetrated various sectors of the government.

Would you manage your household or small business in such a haphazard manner? Of course not. And it is certainly not an effective way to govern a nation. So, I appeal to all of you to bear with us as we confront these tough decisions, much like you have done on the domestic front.

At the heart of ACT’s mission lies the commitment to deliver a smaller, more astute government—one that burdens you with fewer taxes and regulations. It is not merely an abstract ideal; it is a pragmatic response to our economic predicament.
When hardworking individuals like yourself retain more of their earnings and possess the freedom to make sound decisions, we witness a level of productivity and prudence that politicians can only dream of. This, in turn, propels economic growth, facilitates debt reduction, and broadens opportunities for every child growing up in New Zealand.
ACT recognises that the current government is a coalition, and our coalition partner may not align entirely with our vision.
Nevertheless, it is important to recognize that it is moving further than it would without ACT’s influence.