Budget 2023 - Governance highlights

Pre-budget announcements softened the blows and took most, but not all of the surprise out of the “no frills” 2023-24 budget. As expected, there was a strong emphasis on infrastructure and resilience, building back after the North Island floods and Cyclone Gabrielle. Climate change saw an additional $6 billion into the National Resilience Plan as well as funding for initiatives such as warmer healthier homes, free public transport, increasing the Clean Car Discount scheme and expanding electric vehicle infrastructure.

There were a number of key areas of interest for directors as they try and maintain their focus on delivering for their shareholders and stakeholders, while maintaining a focus on long-term benefits. In reviewing the budget, the Institute of Directors has focused on providing a governance lens, identifying budget movements that align with climate transformation, shared value, financial resilience and digital reality, the four externally-focused issues within the Top 5 Issues for directors in 2023; areas that the Government has similarly identified as important for New Zealand’s future. The highlights are not comprehensive, rather they aim to provide directors with a sense of where potential opportunities may arise.

Directors may also be interested in the ASB’s economic commentary on the NZ Budget 2023 analysing key spending increases, debt impacts and growth outlook.