Economy Made Simple #3 | BUDGET 2025: Govt finances, explained

In this episode of Economy Made Simple, Chief Economist Shamubeel Eaqub unpacks how government finances actually work – and why they matter to us all. From tax and spending to investment and debt, he breaks down the jargon we hear so often in political debates and media headlines, and explains how public finance is really just a larger version of household budgeting - with long-term consequences for our country's future. This episode covers:

• Where New Zealand’s government revenue comes from, including income tax, GST and other smaller sources
• What our taxes pay for, from superannuation and healthcare to infrastructure and public services
• The key difference between the govt's day-to-day spending and long-term investment
• When government borrowing makes sense – and when it doesn’t
• Why conversations about debt and deficits often confuse short-term costs with long-term value
• The trade-offs we face as a country: higher taxes vs fewer services, short-term fixes vs long-term gains

This episode aims to shed light on why and how debates about tax, spending and government borrowing affect everyone – and why no matter what’s promised, there are always trade-offs. Shamubeel explains how to cut through the noise, ask better questions, and understand the bigger picture behind political headlines.

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Disclaimer: This podcast contains personal opinions and is intended to provide educational information only. It doesn't relate to your particular financial situation or goals and is not financial advice or recommendations. Simplicity New Zealand Limited is the issuer of the Simplicity KiwiSaver scheme and investment funds. For product disclosure statements please visit Simplicity's website simplicity. kiwi.