Prime Minister John Key says the Government is still on track to reach surplus, with today's half-yearly fiscal update painting a "reasonably good picture" of the economy.
Treasury will release its half-yearly economic and fiscal update this afternoon.
Key told TV3's Firstline this morning that the update would show the Government was back on track to reach surplus by 2014/15, despite some changes.
He said the Government's deficit was down from $18 billion last year to $9b this year, and was on track to drop to $4-5b next year.
Key said the impact of the Government's changes since 2008 was "quite stark".