Some economists believe the Government will do enough in the Budget to avoid a downgrade of New Zealand's credit rating.
Two of the big international credit ratings agencies have the Government on notice for a possible downgrade.
That would add to the Government's borrowing costs, as well as banks.
Westpac economists are not expecting a downgrade. However, they say bigger Budget cuts than those already signalled could be on the cards.
ASB economists also do not expect a downgrade, but say high overall debt - Government and households - means the threat is likely to linger for another two to three years.
