New Zealand boosts defense spending in face of 'adverse' security environment

A file photo taken on March 27, 2026 shows New Zealand's Minister of Finance Nicola Willis speaks to the media in Wellington on March 27, 2026. (AFP)

New Zealand's government will boost defense spending by nine percent, according to its 2026 budget unveiled Thursday, with Finance Minister Nicola Willis saying the country faced its "most adverse" security environment in eight decades.

Wellington needed to ensure "the capability to defend and advance New Zealand's interests," said Willis, adding that the NZ$3.5 billion ($2.05 billion) in new funding over the next four years will include extending the life of Anzac-class frigates, acquiring new drones and improving security and intelligence services.

"New Zealand faces the most adverse and contested geostrategic environment in the past 80 years," she said.