As at August 2026, the best current estimate is that the New Zealand Government costs approximately $424 million every day to operate[1].
What the Government spends each day
Treasury’s Budget 2026 forecast for the year ending 30 June 2027 is:
Core Crown expenditure
Annual cost
Average per day
Social security and welfare $53.497 billion per year $146.6 million per day
Health $34.196 billion per year $93.7 million per day
Education $22.444 billion per year $61.5 million per day
Finance costs (debt repayments) $10.196 billion per year $27.9 million per day
All other government functions $34.490 billion per year $94.5 million per day
Total core Crown expenses
$154.823 billion per year $424.2 million per day
Of that Treasury forecasts that $9.841 billion, or approximately $27 million per day, is on paying back interest of our debt.
The Government is overspending by $11.4 billion for 2026/27—about $31 million per day. Continued deficits mean further borrowing, which produces still more interest costs.
Through Direct Democracy the people have stronger control over how the entire $424 million spent each day is authorised, allocated, monitored and evaluated.
Why Direct Democracy could be better
A properly designed Direct Democracy system could improve the use of public money through:
- Public approval of major spending and borrowing: Large, long-term financial commitments could require a binding public vote.
- Regional decision-making: Regions could direct health, education, policing, housing and infrastructure funding towards their actual needs instead of receiving uniform Wellington-designed solutions.
- Transparent dashboard reporting: People could see what was budgeted, what was spent, who was responsible and what outcomes were achieved.
- Earlier intervention: Communities would not have to wait three years for an election before challenging an unsuccessful programme or financial decision.
- Reduced political short-termism: National and regional plans could operate over 10–20 years rather than continually changing with political parties and election cycles.
- Clearer accountability: Decision-makers could no longer blame another minister, agency or level of government when responsibilities and budgets are constitutionally defined.