Finance spokesman David Cunliffe said the plan would see Labour eliminate net debt a year ahead of National, in a decade's time.
Labour's plan would involve a larger operating deficit than National in just one year, 2013-14.
"This is a responsible and prudent fiscal strategy, written against the backdrop of an uncertain world economy," Mr Cunliffe said
"Labour's fiscal strategy retains the full revenue stream from SOEs and this combined with our fair tax package and expenditure control, means Labour's fiscal surpluses will become larger than those forecast in the PREFU from 2016/17.
"Flowing from this, larger surpluses and higher returns to the New Zealand Superannuation Fund means less net debt in the long term."
He said keeping New Zealand's assets would mean more borrowing in the short to medium term.
"At the end of Labour's first term net debt including the NZSF will be 51.2bn compared to a PREFU forecast of 48.7bn, a difference of 2.55bn.
"The net result is that Labour eliminates net debt including NZSF in 2021/22, a year ahead of National.
"I would emphasise that Labour's fiscal strategy is an integral part of a broader economic plan that will address the underlying structural problems facing the NZ economy: high private debt, low savings, over investment in property and an aging population."
By NZ Herald staff
