When it comes to national budgets, it’s not just about numbers — it’s about values. New Zealand’s political right and left take fundamentally different approaches to spending, investing, and what role the state should play in people’s lives
Ideological Compass
Right-Leaning Budget (e.g. National/ACT):
Focuses on economic efficiency, tax cuts, reducing debt, and shrinking the role of government. Often framed as “getting the books in order” or “back to basics.”
Left-Leaning Budget (e.g. Labour/Greens):
Prioritises public investment, redistribution, and equity. Sees government spending as a tool for improving wellbeing, reducing inequality, and stimulating the economy.
Tax and Revenue
Right:
Tends to lower income and business taxes, arguing this incentivises growth and productivity. Often resists wealth or capital gains taxes.
Left:
More open to progressive taxation — taxing higher incomes, wealth, or windfall profits. Focus on making sure the richest contribute more.
Health and Education
Right:
May freeze or slow growth in health and education spending. Encourages private sector involvement, efficiency drives, and sometimes introduces user-pays models.
Left:
Boosts funding in public services. Promotes free or low-cost access to GPs, tertiary education, mental health care, etc.
Disability and Welfare
Right:
Emphasis on reducing welfare dependency, work incentives, and targeted support. Cuts are often made to disability leadership or sector infrastructure.
Left:
Aims to strengthen the social safety net, fund community organisations, and support marginalised populations. Promotes income adequacy and inclusion.
Climate and Environment
Right:
Often focuses on economic growth over environmental reform. May delay or defund climate action if perceived as “too expensive” or “anti-business.”
Left:
Invests in renewable energy, public transport, and climate resilience. Sees climate action as an investment, not a cost.
Real-World Impacts
Right Budget:
Pros: Debt control, confidence from business sector, potential short-term growth.
Cons: Cuts to public services, increased inequality, short-sighted on social outcomes.
Left Budget:
Pros: Stronger public services, greater social cohesion, future-proofing.
Cons: Higher short-term spending, risk of rising debt, slower business confidence.
Case in Point: 2024 vs 2025?
In 2024, Labour’s budget (centre-left) leaned into cost-of-living relief, health boosts, and climate investment. In contrast, the 2025 right-wing Budget from National/ACT features tax cuts funded by public sector reductions, asset sales, and a freeze on disability and mental health spending.
Conclusion