National says the Government can't sugarcoat Treasury's Pre-election Economic and Fiscal Update, or PREFU, released today.

The future outlook is less rosy than in forecasts from the May Budget.

The Government’s current $23.4 billion deficit is expected to worsen to $31.7 billion in the next financial year - before starting to recover.

Net core Crown debt of $83.4 billion is forecast to climb to $201.1 billion - or 55.3 percent of GDP - by 2023/24.

Finance spokesman Paul Goldsmith says the economy was last in such a state at the end of the Lange Labour Government - after which the incoming Bolger National Government cut benefits.

Goldsmith says that won't happen again - and his plan will be released within the next few days.

"What we've seen is one of the most dramatically bad PREFU's in the history of the country since we'v been having them.

"It shows a shrinking economy, rising unemployment, deficits as far as the eye can see, and an absence of any clear plan."

National's leader Judith Collins told Heather du Plessis-Allan that the figures were so "much worse than any other indication that we've had", the party has gone back to their recovery plans and double checked the figures.

However, she says that it is fully costed and has been looked at by independent economists, and will be out at some point this week - though did not clarify when exactly. 

• Grant Robertson: It will take 'many, many years' to get debt under control

Collins says the PREFU has shown that it is even more urgent to get into 'growth mode'. 

"Clearly, we are having a forecast to have a far worse storm in the medium to long term future then what we've been told or led to believe."