Crown accounts on track for surplus

HAMISH RUTHERFORD
Last updated 10:42 06/06/2014

Relevant offers

Industries

Sephora NZ customers left in dark with undelivered orders and no customer service Workshop gives girls a taste of engineering career Auckland house prices stop rising in November, Barfoot & Thompson says Commerce Commission to take three firms to court over steel mesh Sky and Vodafone agree to delay merger decision Hellaby final takeover price up to $3.60 What NZ firms can learn from Deloitte Fast 50 companies Records fall as New Zealand's new vehicle sales accelerate Springload hosting first NZ Django Girls coding workshop NZ water parks after Dreamworld tragedy: Splash Planet busy, Waiwera plans upgrade

The Crown's coffers are back on track for a surplus next year, with the latest figures showing a marked improvement over the last two months.

The Government's latest financial statements showed operating balance before gains and losses was a deficit of $1.37 billion. However this deficit was $148 million less than Treasury predicted in last year's Budget.

Only two months ago the accounts were showing a deficit that was much larger than projected. In the eight months to the end of February, it was $1.4b, $884m worse than expected, as Crown revenue came in below expectations.

Finance Minister Bill English today welcomed the figures.

"These results confirm Treasury's Budget forecasts, which showed that we are on track to a modest surplus of $372 million next year, increasing to $3.49 billion in 2017-18," English said.

"Sound fiscal policy is essential for sustaining economic growth over the medium term. By keeping on top of government spending we can also help interest rates stay lower for longer."

The improvement came despite tax revenue remaining worse than expected, $111m below Budget 2014 forecasts.

This was offset by non-tax revenue, while expenses were also below forecast, leading to the lower than expected deficit.

Revenue for the period was $2.3b or 4.8 per cent higher than a year ago, with GST, company tax and source deductions, all all up on last year.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content