National's Chris Luxon has been quick to slam Labour's 'economic mismanagement' after the PREFU revealed Government debt has blown out further.

Treasury's latest update is forecasting no recession, but shows the Government will be in deficit longer than expected and take on billions more debt.

Luxon says Kiwis are worried about losing their homes and taking on second jobs as the Government continues to spend.

"What's obvious is that Hipkins and Robertson have no idea how to run the economy, they're running it into the ground. And that's just saddling up a bad set of circumstances for future generations of Kiwis, and that's not on."

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