The opposition says the Government's surplus should be spent on social needs and not tax cuts.

Latest financial figures have the Government's books in surplus to the amount of $1.8 billion.

Finance Minister Bill English says the Government's in a position to be able to make some real choices for New Zealand, and has signalled paying down debt and tax relief as options that could be considered.

MORE: Tax cuts on the horizon as English lands bigger than expected surplus 

Labour's finance spokesman Grant Robertson believes Mr English is aware of the needs and social issues the country is facing.

"I think you'll find that John Key and others in Cabinet are pushing him very hard to go for tax cuts," he said.

"I think when there are children living in cars and garages, tax cuts are a much lower priority than investing in people.

"Most New Zealanders see that, but you know John Key and Bill English are the ones that have to answer that question, whether they're prepared to sacrifice that investment for tax cuts."

Council of Trade Unions Economist Bill Rosenberg said the Government needs to quit thinking about tax cuts, and invest in the country's wellbeing.

Mr Rosenberg said while the books might look good, the state of our health system, social welfare, and child poverty statistics tell a different story.

"If we're going to put money into people's pockets, this should be done through something like Working for Families, which is much better targeted at people who actually need it, and it is 25 percent behind its value in 2010."

He said given the cost of borrowing is low, the Government would be better placed spending the surplus in capital and infrastructure - building houses, hospitals and public transport networks.

"We don't have to focus so much on the surplus and lowering debt, because in a growing economy, we can pay off debt more slowly and still have it falling as a proportion of a growing economy."