The Prime Minister says more job losses are possible in the public service

Treasury documents reveal the Government books have sunk further into the red - with its deficit growing by 3.4-billion-dollars in the year to June.

Revenue has grown but is still outstripped by Crown spending, meaning the deficit now stacks up to 12.9-billion-dollars.

The Government demanded savings from agencies before the Budget - with thousands of roles cut.

Chris Luxon says he can't guarantee there won't be more.

But he says the primary focus is making sure organisations are the right size and have the resources to deliver results.