No surplus in sight as New Zealand outlook worsens

The budget statement made it "premature to identify a surplus date", Treasurer Nicola Willis said. (Mark Coote/AAP PHOTOS)

A deteriorating economic outlook has prompted the New Zealand government to kick a surplus into the never-never, and push on with a budget with tough cuts.

Finance Minister Nicola Willis unveiled the Budget Policy Statement on Wednesday, with a previously forecasted return to surplus of $NZ3.4 billion ($A3.1 billion) in 2027/28 now set to be a $NZ600 million ($A551 million) deficit.