Labour says the longer-term impact of the Budget is likely to be an increase in Crown debt of more than $9 billion by 2024.
Finance spokesman David Cunliffe says the projection is worked out on the basis of Treasury assumptions contained in the Budget.
He says the only way National can fund long-term tax cuts for the wealthy is by reducing the level of public services, or selling off the family silver.
"The government made much, particularly pre-Budget, of the importance of the document being fiscally neutral, but that's clearly not going to happen," says Cunliffe.
He says Budget 2010 worsened the fiscal deficit by $1.1 billion in the forecast period up to 2013/14, and after that time additional debt accumulates more rapidly, rising to $9.2 billion by 2024.
The government will no longer be able to sustain the level of spending on public services because it simply won't have enough revenue coming in," says Cunliffe.
"Even in this Budget the government has redirected $1.8 billion of what it calls lower quality spending, and that has meant savage attacks in areas like home support for the elderly and running down early childhood education."
He says National's plans will see services disappear, put the Super Fund at risk and see state assets sold in increasingly desperate attempts to balance the books.
"More and more of New Zealand will have been sold overseas, and our sovereignty will have been undermined once and for all," Cunliffe says.
