Economists don't believe budget forecasts

Economists say the Treasury's budget forecasts are too optimistic and they doubt economic growth targets will be met.

The government's second consecutive zero budget, presented on Thursday, is supposed to lead to a $197 million surplus in 2014/15 but the experts don't think the figures being used to back that are realistic.

They're pointing out on Friday that the Treasury figures in the budget were worked out more than a month ago and are already out of date because the situation in Europe has worsened significantly since then.

The growth forecasts are 2.6 per cent during the next 12 months, rising to 3.4 per cent in 2014.

Unemployment is forecast to drop to about 5 per cent in 2014.

Westpac's Dominick Stephens says the Treasury's export price projections are far too rosy and the BNZ's Stephen Toplis says even if the European situation doesn't deteriorate the government is going to struggle to achieve its 2014/15 surplus.

BERL's chief economist Ganesh Nana says despite budget tinkering over the last three years New Zealand's growth rate is still well behind its trading partners.

"I think the biggest disappointment is that the government itself doesn't seem very confident it's going to succeed," he said on Radio New Zealand.

Finance Minister Bill English is continuing to insist the budget lays the groundwork for economic growth while opposition leaders are picking it apart and say it proves there is no plan to create jobs and stem the exodus of skilled workers to Australia.