The New Zealand government announced on Thursday a new social investment fund worth NZ$190 million ($112 million) in its 2025 budget. The fund aims to make targeted investments to improve the lives of vulnerable people in the country.
Finance Minister Nicola Willis explained that the fund will support 20 initiatives over the next year. Each initiative will include a tracking system to measure its impact and effectiveness.
“This fund is more than just new money,” Willis said ahead of the government’s budget release on May 22. “It’s about investing earlier, making smarter decisions, and using transparent ways to measure how these efforts help the people they are meant to support.”
The fund’s investments will be guided by data and evidence. The government plans to use this information to identify vulnerable groups that might put future pressure on public finances and the national budget.
Earlier this month, Willis mentioned that baseline spending in the budget would be reduced from NZ$2.4 billion to NZ$1.3 billion. This reduction could help the Treasury forecast an operating surplus, not including the financial results of the government-owned accident health provider.
Currently, the government spends about NZ$7 billion ($4.13 billion) each year purchasing social services from non-government agencies.
Over the next two to three years, Willis expects a significant portion of this funding to shift from existing social services to the new Social Investment Fund. She said this will happen as communities and service providers develop fresh approaches to working with the government.
The fund represents a strategic move to address social challenges more effectively and ensure government spending delivers measurable benefits for vulnerable populations.
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