Kiwi taxpayers will be watching the Budget closely as the Government moves to reveal how it will pay for election promises.
Newshub political editor Jenna Lynch told AM there were still some questions to answer as to how the Government would fund National's promised tax cuts.
"The surprise for most of us that watch the numbers quite keenly will be how they're going to pay for those tax cuts because a big chunk... of the promise that was made during the election campaign [was] that it was going to be paid for by that foreign buyers' tax - which obviously got killed off during Coalition negotiation," Lynch said.
Prime Minister Christopher Luxon committed to the tax cuts in his pre-Budget speech on Wednesday, insisting on providing cost of living support to "low- and middle-income families".
He said the Government also planned to reduce borrowing and get "the books back in order".
"I acknowledge that the savings programme has been difficult for those affected," Luxon said of cuts made to the public service, which had resulted in hundreds of job losses.
"But, above all else, the first priority of Government must be to achieve the best possible outcomes for the money we collectively spend on behalf of taxpayers - the best hospitals, the best schools and the safest streets."
Luxon promised to treat taxpayers "with respect".
"This year, we will deliver income tax relief to low-and-middle-income working New Zealanders for the first time in 14 years. I'm proud of that," he said.
Lynch said Governments usually spring surprises come Budget Day but noted the Government's books were in "pretty bad" shape.
"They can't go out there and do those big-spending Budgets like we have seen over the past few years - during COVID, at least," she told AM.
Lynch believed the Government was showing some "tough love" to get spending and inflation under control.
"Don't expect them to go spending billions of dollars. The Finance Minister Nicola Willis set her Budget priorities a little bit earlier in the year, she said her spending cap will come in under $3.5 billion which is less than Labour had pledged to spend in the Budget."
Willis will unveil the Budget on May 30.
Newshub.
