A cabinet paper has revealed the financial hardship faced by polytechnics and institutes of technology around the country.

Seven are at a high financial risk while 10 are expected to have deficits this year, including Unitec, Whitireia and Tai Poutini, which have already received Government bail-outs.

None of the remaining six polytechnics or institutes of technology is expected to make the three percent surplus that is expected of them.

Education consultant Dave Guerin told Mike Hosking they haven't had many funding increases since 2010, whereas universities have.

"I think what you are seeing is regardless of enrolment decreases and some bad management calls, if there funding had kept up with inflation more of them would have been okay."

LISTEN ABOVE AS DAVE GUERIN SPEAKS WITH MIKE HOSKING