John Key yesterday displayed all the characteristics of a man deeply afflicted with political Tourette's syndrome.

The Government is facing a $12.6b debt hole over the next five years as ballooning cash deficits grow faster than the Crown's borrowing programme, says Treasury.

The Government has signalled a further round of belt tightening in the public sector.

The parents of tens of thousands of preschoolers can expect to start paying more for early childhood care next year.

The Govt's financial statements show the deficit shrank as bigger returns from the ACC and the Cullen Fund kicked in.

As the focus turns from bridging the infrastructure deficit to building the 'nation for the future', there are gritty issues to be addressed, writes Stephen Selwood.

Legislative changes designed to limit confusion for businesses ahead of October's GST hike have been welcomed by a leading accounting firm.

Tax revenue was bigger than forecast and spending lower in the 11 months to the end of May, says Treasury.