Greece and the wider eurozone scrambled back from the brink of disaster again on Friday as the outline of an IMF/eurozone rescue package emerged.

Bill English says $1.8bn of "low quality" spending will be redirected education, health and law and order in next month's Budget.

The Govt is adding another $1.8bn in spending cuts to the $2bn already announced over the next four years, Bill English has announced.

Reserve Bank Governor Alan Bollard has singled out tax reform as an important tool in tackling our economic challenges.

Many risks still threaten the sustainability of economic growth, Treasury said today.

Finance Minister Bill English told a taxation review workshop that any major tax changes would need widespread public support to succeed.

Treasury has painted a bleak picture of an under-performing New Zealand economy and outlined some tough choices for the Government.

The Government needs to borrow $250 million a week after the havoc wreaked by the recession on its books.

The Government faces an increased deficit due to extra spending and the effects of the recession, says Bill English.