Government deficit improves

Last updated 10:14 25/01/2013

Relevant offers


Young have biggest reservations about the 'pros and cons' of the internet Mad Butcher Tauranga in liquidation after months of poor trading World Bank names NZ best country for business WorkSafe to investigate trampoline parks after rise in injuries No simple link between media competition and story choice, says US professor Job listings on Seek spike in September as big retailers open stores Milk powder scam raises questions about Fonterra, expert says Bitter lesson for investors as Wynyard calls in administrators AJ Hackett to open new "world's highest bungy" - in China New York enacts restrictions on Airbnb, with fines of up to $10,000

The Government's deficit is tracking lower than expected thanks mainly to stronger returns from investments in the New Zealand Superannuation Fund and ACC.

Treasury today released results for the Crown accounts for five months to the end of November that showed the operating balance was $706 million in surplus - $1.2 billion better than the $515m deficit forecast in the pre-Christmas half year update.

The deficit before gains and losses was $3b, $200m better than expected.

Treasury said core Crown tax revenue at $22.5b was close to forecast, $127m (0.6 per cent) higher than expected, with all tax types broadly in line with forecast.

Core expenditure was also close to forecast at $28.8b (up 0.1 per cent on forecast).

The residual cash deficit was $200m below forecast at $6b owing to higher than expected tax receipts ($210m or 1 per cent above forecast).

GST contributed $187m of the additional receipts but this was most likely due to timing of payments and the increase was expected to reverse in coming months.

Net debt at $56.4b (27.1 per cent of gross domestic product) was $317m below forecast, largely because of the lower residual cash deficit, while gross debt was on forecast at $82.4b, or 39.6 per cent of GDP.

Ad Feedback

- Stuff

Special offers

Featured Promotions

Sponsored Content