Investors offered to buy more than six times the amount of bonds on offer in the NZ Debt Management Office's first sale of the securities this year.

The Reserve Bank says the government's efforts to build its revenue base will slice four percentage points from nominal GDP over the next four fiscal years.

The government has front-loaded its debt because it is cheaper to borrow money now than it is likely to be in the future, Finance Minister Bill English says.

Budget prediction of massive blowout proves accurate.