It might come as a surprise, but as a currency-issuing government the taxes the NZ Gvt receives are not recycled to 'pay for' its spending, instead they are simply removed from the economic system (deleted). Here's a short-animated video explainer. (Btw I just joined your newsletter and submitted response to your short Q&A, feel free to reach out to learn more).
The Budget on 15 May will still be one to watch for how spending is allocated.
It might come as a surprise, but as a currency-issuing government the taxes the NZ Gvt receives are not recycled to 'pay for' its spending, instead they are simply removed from the economic system (deleted). Here's a short-animated video explainer. (Btw I just joined your newsletter and submitted response to your short Q&A, feel free to reach out to learn more).
https://youtu.be/fg0R9Ye2ovM?si=6jVRUezdy5Vx3xLm