Finance Minister Nicola Willis says the Government's still committed to cutting tax in May's Budget, despite worsening economics.

She's revealed in today's Budget Policy Statement, Treasury now expects 0.1 percent GDP growth this year.

The forecast last year was 1.5 percent.

The Finance Minister says surplus isn't possible in 2026-27 - but it could be achievable the following financial year, although it isn't a given.

She says Labour's spending legacy needs to be corrected in future Budgets.

She says the Government will set a moderate, sustainable course of fiscal correction over several years - and any new spending will be targeted, and within their means.

Newstalk ZB Political Editor Jason Walls joined Simon Barnett and James Daniels with the details.

LISTEN ABOVE

See omnystudio.com/listener for privacy information.