New Zealand was mostly stable in key international rankings and domestic socio-economic measures. But there are signs of slippage in some areas and not enough progress in others.

The Mid-Year Economic and Fiscal Outlook (MYEFO) shows the federal budget is headed for a small $1.1 billion deficit this financial year, according to the update.

People on benefits are borrowing from the government to pay for essentials like power bills and car repairs. But repayments leave them with even less than before.