The Budget will be delivered on 26 May, Finance Minister Bill English announced today.
Mr English told MPs on Parliament's finance and expenditure committee the economy remained on track for reasonable growth, creating jobs and raising incomes.
He said there were challenges, including slowing growth in China, weaker dairy prices and the financial health of European banks.
Mr English repeated it would be hard to maintain and increase budget surpluses and repay debt, due to low inflation, low dairy prices and low interest rates.
New spending allowances of $1 billion in the current June financial year and $2.5 billion the year after remain in place, although Mr English said he had the option to shift that around if need be.