The Finance Minister's painting a grim picture of the economy - signalling the Government will further cut into the Public Service. 

Treasury's opened its books for the half-year economic and fiscal update - showing the expected surplus has been pushed out from 2027 to beyond 2030.

Nicola Willis has adjusted the way the surplus is calculated, but says come Budget Day next year, she'll be forced to make some tough decisions. 

Newstalk ZB senior political correspondent Barry Soper says the Government inherited a tough situation.

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