The prime minister says there will be no "extravagant" election promises from National, and confirms his government will continue to run a tight budget, in his first speech of the election year.

In a State of the Nation address at Auckland's new International Convention Centre, Christopher Luxon launched a defence of his government's progress and reform programme, and promised there would be no deviation from its plan should it win a second term.

National has been running on a slogan of 'fixing the basics, building the future,' but much of the speech was about the first part.

"For two years, National has been fixing the basics. Now heading into the election this year, National will campaign on a bold plan to build the future and leave a legacy of prosperity and opportunity for future generations," he said.

Despite rising unemployment, a deficit higher than originally

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