Labour and National have both accused each other of smoke and mirror tricks over plans to increase the number of state houses.
Housing Minister Phil Heatley said in the coming financial year Housing New Zealand would get $20 million to build 69 new houses on top of 475 already budgeted for.
Labour's housing spokesman George Hawkins said today last year's budget had included money for 650 new state houses, so what Mr Heatley had announced was actually a cut.
"It's very hard to understand how building fewer houses than planned and budgeted for will create jobs and growth," he said.
But Mr Heatley said Labour's budget promise did not stand up to scrutiny and Housing NZ had said last year it could only build 530 to 550 houses.
Since National took office it had been warned by Housing NZ that it had money only for 475 homes.
"Seeing the need, particularly in south Auckland, we committed to delivering the balance of the 475 state houses. Then yesterday, as part of the Government's Jobs and Growth package, we announced we would fund the building of an additional 69 houses over the next six months, taking the total that will be delivered in the 2008-09 fiscal year to 544."
The Government said yesterday it would boost Housing NZ spending by $124.5 million .
This included $104.5m to upgrade 10,000 existing state homes over the next 18 months and $20m to build 69 new state homes within six months.
Housing NZ said today that the money for upgrading state home s announced yesterday was on top of the normal $150m- $200m it budgeted each year for maintenance and upgrading.
NZPA