The Finance Minster says credit agencies are still looking favourably on New Zealand, despite high debt levels.

Treasury told the Government it was running a structural deficit the day it was sworn in; the Labour Government was never told.

It comes as Nicola Willis gears up to deliver her first Budget next Thursday.

Willis says it's important to show New Zealand won't be in perpetual deficit.

"We do need to show a path back to balanced books, we do need to show that in the medium term, we're going to get debt down. Because otherwise - the alternative part is the basket case."

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