Government expenditure on recreation, culture and religion

IBISWorld forecasts government expenditure on recreation, culture and religion to decrease by 0.3% in 2025-26 to $4,444.2 million. The 2025 Budget allocated $403 million to Arts, Culture and Heritage, down from $450 million in 2024, signalling continued fiscal tightening across the sector. The broader pattern of constrained public spending in New Zealand, coupled with a reduced public sector workforce, is reducing capacity for new initiatives across the recreation, culture and religion sectors. Organisations operating in these areas report that staffing pressures and reduced capability are contributing to a more cautious and scaled-back approach to service and program delivery.

Budget decisions reveal a patchwork of shifting priorities. NZ On Air received $1.6 million in 2025, yet other programs absorbed substantial cuts. Funding for Matariki events fell by 45% from 2023 to 2024, and support for Wellington's Fale Malale, a cultural hub for the Cook Islands community, was withdrawn in 2025. These reductions were accompanied by targeted reinvestment, with resources redirected towards a national music centre and commemorative initiatives, including projects linked to the Christchurch mosque attacks. Sport and recreation agencies received no new funding and the expiry of remaining COVID-19 support packages from 1 July 2025 further tightened overall spending.

Funding for recreation, culture and religion accounts for approximately 1.8% of overall government expenditure. Administration remains fragmented, split between the Minister for Sport and Recreation and the Minister for Arts, Culture and Heritage. Support flows through agencies like Sport New Zealand (Ihi Aotearoa), Creative New Zealand, Heritage New Zealand Pouhere Taonga and the Ministry for Culture and Heritage (Manatu Taonga), as well as private organisations delivering public amenities, including performing arts centres and local sports facilities.

Despite the reductions in 2025-26, expenditure across this budget category has grown over the past five years, rebounding from pandemic-era reprioritisations that shifted funding towards health and emergency responses. Overall, IBISWorld expects government expenditure on recreation, culture and religion to increase at a compound annual rate of 5.5% over the five years through 2025-26, indicating a gradual stabilisation of sector funding.