Mr English said the Budget would focus on building savings and reducing vulnerability to foreign debt.
"The Government has already indicated that it intends to borrow less in future than is currently forecast and get back to budget surplus sooner," he said.
"Therefore, the Budget this year will reduce new operating spending to around $800 million to $900 million a year, from the current allowance of $1.1 billion. We will prioritise new spending on health and education and set a path to meaningful surplus in 2014/15 -- a year earlier than forecast.
The Government would also be looking at partial sales of state-owned assets, including selling shares in the country's four major energy companies.
"We are seeking treasury advice on this and will make our position clear to New Zealanders well before the election in November."
