Another plank in delivering National's economic growth agenda, Prime Minister John Key has dampened down prospect for Thursday's budget calling it "solid and sensible".

Mr. Key was not expecting the budget to make him overly popular, but in his very powerful words said that, it's not possible that one individual budget or one individual measure can deliver all that we need to deliver, a step-change in an economy, when one considers what's happening, there are a lot of positive steps there.

Expected tax reform has dominated pre-budget debate. Income tax rates were expected to drop; the biggest fall would be in the top rate. GST was also signaled to increase.

To Take the tax package "in totality" and take into consideration that the Government was trying to "drive faster economic growth" is very important, said Mr. Keats.

The Government has been criticized for anticipated tax rate cuts and a rise in GST, which would profit New Zealanders on high incomes. He has said New Zealand needed to offer incentive for those on high incomes to remain here. Mr. Keats however did not get into the details.

Labor leader Phil Goff said, that high income earners should pay more tax because they have more money. He further said that under expected tax cuts he would get $200-$300 a week extra.

Mr. Goff felt that it was not a fair deal as GST increases would disproportionately affect low income earners. Other expected announcements included changes to the housing market which could force rents up and deliver first-home buyer opportunities.

"Michael Cullen once famously said you don't win support in budgets you tend to lose it, I guess we'll find out whether he's right or not come Thursday, Friday."