The Treasury's confirmed the gloomy economy outlook Nicola Willis has warned of.

The expected surplus has been kicked out to the 2027/28 financial year, where the Crown's expecting the books to be $1.4 billion in the black.

Total Government debt is expected to reach $210 billion over the same period, and GDP growth if forecast to stay relatively low.

But it's not all bad - Treasury's expecting inflation to track back towards 3 percent by the end of the year.