Government expenditure on recreation, culture and religion

IBISWorld forecasts government expenditure on recreation, culture and religion to decrease by 0.3% in 2023-24 to $3,710.4 million. The slight decrease can be attributed to shifting priorities, economic pressures and policy changes. As the government potentially redirects resources towards urgent areas like healthcare, social welfare and infrastructure because of competing priorities, budgets for less immediate sectors like recreational activities, cultural projects and religious institutions might see reductions. However, the New Zealand Government (Te Kawanatanga o Aotearoa) provided additional support mechanisms to recreational, cultural and religious services after these sectors were identified as some of the worst affected by the pandemic. For example, $25.0 million was allocated to the Arts Council of New Zealand Toi Aotearoa (Creative New Zealand), while Nga Taonga Sound & Vision received $31.8 million.

Funding for recreation, culture and religion competes with nine other categories for total government expenditure. These categories are general public services, defence, public order and safety, economic affairs, environmental protection, housing and community amenities, health, education and social protection. Funding for recreation, culture and religion is typically minor compared with other categories, commanding approximately 1.91% of overall government expenditure. This portion has declined over the past five years.

Government expenditure on recreation, culture and religion has many potential endpoints. For instance, funding can be channelled to Sport New Zealand (Ihi Aotearoa), the Heritage EQUIP fund, Creative New Zealand and even New Zealand's ongoing funding to the Commonwealth War Graves Commission. Notably, the Ministry for Culture and Heritage (Manatu Taonga) operates as an advisory board and forwards funds to other culture-focused bodies. Private enterprises may also receive funding for work that benefits the public, like sports facilities operation and performing arts centre construction. The scope of end recipients for funding is significant, with expenditure comprising several individual items.

Substantial increases in funding to many bodies and causes have increased government expenditure on recreation, culture and religion over the past five years. Several federal budgets have boosted funding, including increasing funding for the Ministry for Culture and Heritage in 2018 and the Creatives in Schools initiative in 2019. Overall, IBISWorld forecasts government expenditure on recreation, culture and religion to increase at a compound annual rate of 4.7% over the five years through 2023-24.