New Zealand government forecasts narrower budget deficit for FY22

New Zealand's government on Thursday increased income support and promised significant investment in the health sector while forecasting that returning the budget to surplus would take longer than previously forecast.

The deficit for the current financial year, ending on June 30, will be narrower than previously forecast.

Heavy spending was targeted towards infrastructure, including new schools, and defence, while funds were also allocated to ease the impact of global inflation on New Zealanders.

The highlight was billions of New Zealand dollars in new funding for the country’s health system, which will, among other things, see more funding for drugs and