New Zealand shares fell on Tuesday as Finance Minister Nicola Willis said baseline spending for the current year would be nearly half of the forecasted NZ$2.4 billion due to a worsening economy.

The S&P/NZX 50 Index fell 0.61% or 73.44 points to close at 12,025.45.

"That lower growth trajectory has an inevitable impact on the government books, reducing revenue and threatening our already difficult return to surplus and debt reduction," Willis said.

Meanwhile, the seasonally adjusted number of filled jobs across New Zealand industries went up 0.2% month on month to nearly 2.4 million in March after being flat in February, data from Stats NZ showed Tuesday.

Also, New Zealand's total residential lending rose to NZ$8.49 billion in March from NZ$5.85 billion in February, data from the Reserve Bank showed Tuesday.

Meanwhile, analysts said they are expecting a 0.2% increase in New Zealand's unemployment rate to 5.3% in the first quarter, as growth in the labor force outpaces labor demand, according to a Tuesday note by ANZ Research.

Further, enterprise entries in New Zealand reached 14,892 in March, compared with 4,167 in February, Stats NZ data showed Tuesday.

In corporate news, Auckland International Airport (ASX:AIA, NZE:AIA) has delayed the construction of its second runway by a decade, which was previously planned to be operational by 2028.

a2 Milk Company (NZE:ATM, ASX:A2M) said UBS Group ceased to be a substantial company holder on April 23.