New Zealand Set to Deliver Tight Budget as Economic Outlook Dims

New Zealand Finance Minister Nicola Willis will keep a tight rein on spending in this week’s budget as uncertainty about global growth holds back a domestic recovery and restrains government revenue.

Willis, who delivers the budget at 2 p.m. Thursday in Wellington, is trying to reduce debt and return the government’s books to surplus while accommodating the funding needed in essential areas such as health and education. She has already said she will slash the budget operating allowance, the money set aside for new initiatives, to NZ$1.3 billion ($770 million) from NZ$2.4 billion.