Labour and National are confident New Zealand's financial system is sound despite global financial turmoil, but are ready to act if needed.
Stock markets in Europe and the US plummeted on Tuesday, while markets in the Pacific and Asia opened sharply lower, on fears that attempts by governments around the world may not be enough to contain the fast-spreading credit crisis.
On Monday, New Zealand's Treasury forecast a Government cash deficit this financial year of almost $6 billion, rising to $7.3 billion by 2013. It said the operating deficit was $31 million this year and would worsen to $3.2 billion in five years time.
National Party finance spokesperson Bill English says he is satisfied the Reserve Bank can maintain financial stability in the face of international financial turmoil.
Mr English told Morning Report a bank deposit insurance scheme might be needed at some time in the future to help shore up the banking system.
Labour Party finance spokesperson Michael Cullen said the country is not at the stage yet of needing a bank deposit insurance scheme.
But he said if other countries adopt such schemes, New Zealand will probably have to follow suit.
The parties disagree over whether bigger tax cuts will help cushion the economy from the worst effects of recession.
Mr English said with the recession and turmoil on international financial markets, tax cuts are needed more than ever.
He said the party's tax cut policy, to be announced on Wednesday, is part of an economic package aimed at getting the country through the recession, and protecting the vulnerable.
Dr Cullen said if National matched its bigger tax cuts with spending cuts there would be no overall benefit to the economy, and if it did not, budget deficits would get even worse.
He said other short term measures would more sensible as a tax cut could not take place for another six months.
Meanwhile, United Future leader Peter Dunne wants a non-partisan approach to deal with the effects of the credit crunch on the New Zealand economy.
He said the credit crunch is an international crisis, so the fact that an election campaign is underway is irrelevant.
Mr Dunne said New Zealand's political leaders need to work together to reassure the public in the same way as those in the United States have done.
