The Government trying to tighten the belt and clamp down on wasteful spending is far too little too late, according to the National Party.
Finance Minister Grant Robertson on Monday said the Government was making public service savings and consultant and contractor cutbacks, which was expected to save $4 billion over the next four years.
The savings promise would put "the squeeze on all political parties" ahead of October's election, according to prominent economist Cameron Bagrie.
"There's a bit of ideology now getting met by economic reality; the economic reality is firms are not making money, they're not paying tax on the other side and we're seeing company tax fall 10 percent on a year ago. So things are starting to hit home really hard," he told AM on Tuesday.
But National finance spokesperson and deputy leader Nicola Willis described the Government's savings as "small fry" and "we will go further" than Robertson.
She told AM the savings would not impact her party's tax policy.
"Our tax plan will be partly funded by new, targeted revenue measures," Willis said, declining to say what those revenue measures were.
"[There will be] no new taxes to working people, our view is that the tax system has become unfair because the squeezed middle of everyday working people are paying higher rates of income tax," she added.
Willis said the "new measures" National was proposing would "ensure we have the revenue to responsibly fund income tax reduction for the squeezed middle".
Asked by AM host Ryan Bridge if National promised no new cuts to frontline services, Willis said: "I make that promise.
"What's more… every Budget that Chris Luxon and I deliver will include more spending for health and for education - those are bottom-line commitments from us."
Meanwhile, Bagrie noted all political parties wanted "to provide tax cuts" in one way or another but, at the same time, voters wouldn't want to see frontline services slashed.
"We know more money's needed for health, education, defence, infrastructure, roading… and so you're trying to make those all add up and you don't have too much wriggle room," he said.
"All political parties are going to be in the same old fiscal jam as they navigate, where are the economic and fiscal priorities? Being mindful that it is election year as well so there's going to be a fair bit of sugar dancing going around."
Chris Hipkins told AM the Government's announcement to cut billions of dollars of public service spending was part of a plan he had since he took over as Prime Minister.
Like Willis, Hipkins said no frontline departments would see spending cuts under his watch.
