(L-R) Director-General of Health Dr Ashley Bloomfield, then-Prime Minister Jacinda Ardern, and Minister of Finance Grant Robertson arrive at a press conference at Parliament in Wellington, New Zealand, on Aug. 17, 2021. Hagen Hopkins/Getty Images
New Zealand’s government spent $66 billion responding to COVID-19—$16 billion more than originally announced—much of it in ways Treasury now says were unnecessary and difficult to unwind.
A new Treasury report says the scale of discretionary spending was among the largest globally and left structural deficits that will burden future governments. It also warns against relying on outdated crisis responses and calls for clearer fiscal rules to prepare for future economic shocks.
