Cutting debt - we'll be hearing plenty about that in next week's Budget, and the election campaign. But how deep in hock are we? Brian Fallow reports.

For 15 straight years until the recession of 2008-09, the New Zealand Government ran surpluses and paid down debt.

A Treasury paper out today argues for lower tax and less government spending, saying the size and the structure of government plays an important role in economic performance.

The Government is being accused of taking a slash and burn approach to spending after Finance Minister Bill English signalled cuts to public services and new figures showed substantial job losses in the sector.

With the Government planning to axe all new spending in the upcoming budget, ministers are making "good progress" finding areas to cut spending so it can be reallocated to health, education and justice in the budget, the PM says.

Let political miscreants go quietly into the night.