The Labour Party is saying the numbers aren't looking good for the country's schools.

MP Chris Hipkins has raised concerns about the number of state schools that recorded a deficit in the last financial year.

They number 877 in total with 101 of them running deficits at over $100,000.

Mr Hipkins called the figures a shocking state of affairs.

"The fact that we've got such a significant number of schools running deficits on a yearly basis, that's the issue I think that's of major concern."

However, Ministry of Education data shows the overall proportion of schools recording annual deficits has been falling.

In 2010 under 50 percent of schools were recording an annual surplus, as of 2015 the proportion was over 62 percent.

That same report says 94 percent of all state and state-integrated schools have at least enough current assets to cover their short-term debts.

But Mr Hipkins insists that despite these figures, there is still a very real problem considering the amount of schools that are still in deficit.

"I think what you'll see is that it varies from year to year, but we've still got a significant number of schools in deficit" he said.