Labour says the current state of Government books shows it went too hard and too fast with public service cuts.
Treasury documents show the Crown's deficit has grown $3.4 billion dollars in the year to June, to $12.9 billion.
Spending is outpacing income, despite revenue increasing by $14 billion.
Labour Finance spokesperson Barbara Edmonds told Ryan Bridge the Government could have kept public sector jobs if it ditched tax cuts.
She says public funding flows through the economy to help during a cost of living crisis.
Edmonds says the Government's decisions have made the annual deficit worse than at the height of COVID.
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