Photo: RNZ / Cole Eastham-Farrelly
The Public Service Association is accusing the government of "brutal austerity" - after the coalition forecast further cuts in next year's Budget.
The Crown's financial position has deteriorated - with tax revenue estimated down $13 billion over a four-year period.
Finance Minister Nicola Willis says it proves the need for fiscal discipline.
But the PSA says the reckless drive to cut costs shows the government is prepared to put dollars ahead of New Zealanders' lives.
Ahead of the HYEFU update the government and opposition were already blaming each other.
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