Like many nations, New Zealand is struggling with a debt blowout due to COVID-era support spending.
Worsening the state of government books, New Zealand is also battling an economic recovery from a tough recession in 2024, with rising unemployment.
In that context, Finance Minister Nicola Willis has pledged to reduce her operating allowance in the May 22 budget to $NZ1.3 billion ($A1.2 billion), down from $NZ2.4 billion ($A2.2 billion).
"We will be spending billions less over the forecast period than would have otherwise been the case," she said in a speech in Wellington on Tuesday.
"This will reduce the amount of extra borrowing our country needs to do over the next few years and it will keep us on track towards balanced books and debt reduction."
Treasury's Half Year Economic and Fiscal Update, released in December, forecasted the government would next produce a surplus in 2029.
Ms Willis, whose National party campaigned on public sector cuts and fiscal restraint, says he hopes to bring the books back to the black in 2028, which would require her party to be returned to government at next year's election.
She said the budget's fiscal forecasts were yet to be finalised, but the latest projections continued to tip a surplus in 2029.
"Our budget will still deliver increased investment in the things that really matter to Kiwis: like health, education, law and order, the defence force, business growth and targeted cost of living relief," she said.
"This year's budget will not be a lolly scramble. What this budget will be is a responsible budget."
Earlier in April, the government released its much-delayed Defence Capability Plan, with $NZ9 billion ($A8.4 billion) of new spending over the next four years.
That promise, and the quest to return to surplus, will mean additional cuts will also be made clear in the budget.
A Radio NZ tracker shows the government has already cut more than 6000 public sector jobs since taking office in November 2023.
Opposition Leader Chris Hipkins attacked those cuts, as well as 2024's income tax cuts, as "irresponsible".
"You may as well buy our teachers, doctors, nurses, police officers and other valuable public servants a ticket to Australia because Nicola Willis is hanging out a very clear sign there's no hope here for them," he told Radio NZ.
