Government debt is lower than forecast, but financial pressures loom on the horizon.

The Government's interim financial statement shows net debt is at $70.5 billion in the seven months to the end of January.

It's $3.5 billion less than expected, mostly due to the Super Fund gaining value.

Infometrics Chief Economist Brad Olsen told Kate Hawkesby it might be time to rein in the spending due to material shortages and inflation.

He says the Government has to make a clear list of its financial priorities and potentially re-shuffle or scale back the spending.

LISTEN ABOVE

Government debt is lower than forecast, but financial pressures loom on the horizon.
The Government's interim financial statement shows net debt is at $70.5 billion in the seven months to the end of January.
It's $3.5 billion less than expected, mostly due to the Super Fund gaining value.
Infometrics Chief Economist Brad Olsen told Kate Hawkesby it might be time to rein in the spending due to material shortages and inflation.
He says the Government has to make a clear list of its financial priorities and potentially re-shuffle or scale back the spending.
LISTEN ABOVE

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.

A fresh and intelligent start to your day - catch the very latest international and domestic news developments, sport, entertainment and business on Early Edition with Ryan Bridge, on Newstalk ZB.