The Labour Party says pensions are under threat because the Government has suspended payments into the National Superannuation Fun, and the New Zealand Manufacturers and Exporters Association (NZMEA) says the budget fails to promote real economic growth.
Opposition MPs seized on national super and the scrapping of tax cuts when they launched a furious assault on the Government in Parliament minutes after Finance Minister Bill English's budget speech ended.
"They don't believe in universal superannuation," said Labour leader Phil Goff.
"Not only have they gutted KiwiSaver, now they've gutted super as well."
Mr Goff said ongoing payments to the fund, which was started by former Labour finance minister Michael Cullen to help finance pensions in the future, were essential to guaranteeing the money would be there to pay them.
"The net result of the decade of deferrals will be that future entitlements to super are put at risk no matter what pious pledges Bill English makes now," Mr Goff said.
"National has dug a $20 billion hole at least for our kids to dig themselves out of."
Mr English's explanation for deferring payments to 2020 was that when the fund was set up, the idea was to put budget surpluses into it.
Those surpluses had disappeared and the Government would have to borrow $2 billion a year for the next decade to maintain the payments.
"It makes little economic sense to burden future generations with debt incurred to finance investments that were intended to reduce their need to borrow," he said.
But it was an easy target for Labour, and so was the confirmation that the tax cuts had been scrapped.
The Government took a beating on that when it brought in a bill under urgency last night to repeal the 2010 and 2011 tax cuts.
Labour reminded National it used urgency to enact the tax cuts after last year's election, and that Prime Minister John Key had personally guaranteed them.
Opposition finance spokesman David Cunliffe said Mr Key had lied - a remark he had to withdraw - and National had always known it wasn't going to be able to afford them.
Mr Goff said Mr Key had broken a promise.
"John Key and Bill English, determined to buy the election, made the promise and didn't care whether or not they could honour it," he said.
The bill to repeal the tax cuts, however, went through its early stages on unanimous votes and Labour was in the odd position of supporting it while it was attacking the Government for doing it.
NZMEA chief executive John Walley said the budget contained little in terms of changes to support any real economic development.
"There was some tinkering around the edges, with some new funding allocated, but no attempt has been made to tackle the fundamental imbalances in our economic framework," Mr Walley said.
"The budget made some attempt to curtail government spending but there is no provision to promote real economic growth."
Auckland Chamber of Commerce chief executive Michael Barnett said the Government needed to look at investment, innovation and improved productivity.
"Having addressed the debt side of the ledger, we need now to urgently turn our attention to incentivising businesses to invest, get into exporting and grow their businesses," Mr Barnett said.
"That was the missing ingredient today and needs to be the focus of the follow-up budget to this scene-set."
Business New Zealand chief executive Phil O'Reilly said the budget "doesn't have a hint of panic about it".
However, Business Roundtable executive director Roger Kerr said plans to curb government spending were inadequate.
"This is not a tough budget. It was a first step on a long road."
Finance Minister Bill English said the budget was designed to provide an environment in which business could thrive.
"A lot of the stuff is not glamorous but it is vital," Mr English said.
Wellington Regional Chamber of Commerce chief executive Charles Finny said there were bold steps on expenditure and new investment in infrastructure.
"The Government has struck the right balance between stimulating the economy and constraining debt in the medium-term," he said.
Newmarket Business Association general manager Cameron Brewer said deferring tax cuts would not affect retailers as consumers had already cut back their spending.
Focusing on good economic management and stability would in the long term benefit business more than a couple of rounds of tax cuts.
NZPA / 3 News