Some challenging Budget decisions ahead for the Government due to the ongoing war in Iran. 

Treasury officials are revisiting their economic forecasts for next month's Budget, just weeks before it's due to be delivered. 

International credit agency Moody's has downgraded New Zealand's economic outlook from stable to negative, noting the Government's later-than-expected return to surplus. 

Infometrics Principal Economist Brad Olsen told Ryan Bridge the Government's finances weren't in great shape, even before the war. 

He says the Government wasn't projected to be back in surplus until the end of the decade. 

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