New Zealand's Labour Party has announced its fiscal and monetary policy plans, promising to return the government accounts to surplus by 2029/30 and to restore the Reserve Bank's dual mandate, which includes both price stability and maximum sustainable employment. The announcement was made on August 23, 2026, as part of the party's election platform.
Labour also said it would aim to reduce net debt to 20% of GDP over time, and maintain core Crown expenses at about 33% of GDP once its proposed capital gains tax is fully implemented. The party criticized the current government's handling of the economy, arguing that its policies have led to rising unemployment and a cost-of-living crisis.
The dual mandate was originally introduced by Labour in 2018 but was removed by the current coalition government in 2023, which re-focused the Reserve Bank solely on inflation. Labour's pledge to restore the dual mandate signals a shift back to prioritizing employment alongside price stability.
Economic analysts note that the promise of a surplus by 2029/30 is contingent on revenue from the capital gains tax and sustained economic growth. The party has not yet provided detailed costings for its policies, but says it will release a fully costed fiscal plan before the election.
