New Zealand Finance Minister Bill English warns of economic challenges ahead if the country wants to return to a surplus budget due to low inflation and dairy prices. Despite the difficulties, New Zealand's economy remains on track as the jobs market and income are expected to surge in the next couple of years.

English said that the next month's Treasury update concerning the economy may not include a forecast of a budget surplus. It was previously reported that the Treasury projected a surplus of $297 million in the year ending June 30, 2015 based on an operating balance before the pre-election update released in August. The number has been reduced to $372 million when the May budget was announced.

In his speech at the ASB business breakfast in Auckland, the finance minister said the "unusual combination of economic circumstances" may affect forecasts as New Zealand attempts to return to surplus within the year. English believes the strength of New Zealand's economy and controlled government spending can help deliver a surplus. A strong New Zealand dollar and more jobs can help maintain the current cost of living. There is less pressure on the Reserve Bank to increase interest rates due to low inflation.

English revealed that businesses and consumers remained confident about the future of New Zealand's economy based on surveys. He said manufacturing and services sector continues to remain strong. This means companies are hiring more people and paying higher wages. Citing the G20 meeting in Brisbane, English said that growth continues to be elusive for Europe and more recently in China. The economic uncertainty reflects in some commodities with declining prices.

Meanwhile, New Zealand Greens co-party leader Russell Norman said English may be attempting to prepare the public for another budget deficit. In a report by Stuff.co.nz, Norman said no finance minister has seen seven consecutive budget deficits. He added that National has amassed $55 billion in additional debt in over six years which is equivalent to more than $14,000 per person in New Zealand.