Finance Minister Nicola Willis has accused Labour of "fiscal innumeracy" and a reckless approach to spending as the coalition comes under pressure from business leaders to do more to turn around the economy.
Labour leader Chris Hipkins has fired back in turn, saying Willis should stop throwing mud and focus more on getting National out of the "very big hole" it has dug for itself.
On her way into a National caucus meeting on Tuesday, Willis set herself up at the Prime Minister's usual spot at Parliament to take questions, meaning Christopher Luxon - who arrived mere minutes later - had to station himself off to the side.
"I am a little bit embarrassed that I took his microphones," Willis laughed off her mistake.
"But you know what? I know that he gets a lot of microphones, and he won't be shedding a tear."
Fresh back from a trip to London and New York, Willis took the opportunity to update media on her recent meetings with investors and credit rating agencies.
She cited their confidence in the government's financial management and pointed to Fitch Ratings' recent affirmation of New Zealand's AA+ rating.
But Willis said Fitch's commentary - published Monday - also contained a "warning shot" to the opposition parties through its reminder about the importance of fiscal responsibility.
"Chris Hipkins is taking an altogether different path in which he seems to be walking a lot closer to [Green co-leader] Chlöe Swarbrick and her team of vandals who want to gaslight New Zealanders into believing that we can simply spend, tax, and borrow more, and everything will be better."
Willis also accused Hipkins of pretending the country's debt servicing costs were not something to worry about, despite the bill reaching almost $9 billion a year.
"This kind of fiscal innumeracy is dangerous for New Zealand," she said. "Every New Zealander will pay the price if a Labour-Greens government puts our fiscal reputation at risk."
Heading into a separate Labour caucus meeting, Hipkins scoffed at Willis' assessment and noted that Labour had yet to release its full fiscal plan.
"Nicola Willis is speculating on what our policy may or may not be. We haven't set out a policy yet.
"We've got to see how much more damage she'll do in the next 12 months before we can do that."
Hipkins said New Zealanders could rest assured that a future Labour government would aim to get the books back in balance and maintain surpluses.
He said Willis' claims regarding his views on debt were "absolutely ridiculous".
But he said the conversation was nuanced because long-term assets needed to be funded somehow.
"[National] need to figure out how to get themselves out of a hole without worrying about other political parties."
Green co-leader Chlöe Swarbrick told RNZ the party's financial strategy proposed increasing borrowing in order to create jobs and better infrastructure which in turn would increase financial stability and resilience.
"The minister needs to read a few more books on that point."
In its commentary Fitch praised both National and Labour's long-term commitment to "prudent fiscal policies" but repeated its previous warning that any "evidence of a weakening in the culture of fiscal responsibility would affect creditworthiness".
The report also flagged that a "severe housing-market correction" or a "sharp rise in unemployment" could also lead to a future rating downgrade.
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