Strong super and ACC returns lessen deficit

VERNON SMALL
Last updated 10:43 25/01/2013

Relevant offers

Politics

Can John Key pull off a fourth term? Here are the reasons why he might Transport Minister Simon Bridges stalls on electric vehicle policy US official: John Key, Barack Obama relationship one of 'real friendship' Government gives another $100k to deportee support service Paula Bennett: Government not planning to help fund beach campaign John Key: Government could make contribution to Awaroa Inlet campaign Bill English wants to share his shearing skills with ewe Prime Minister John Key says Southland is becoming more important to New Zealand's economy MP Tim Macindoe hosts flag referendum debate in Hamilton It's time to ban sunbeds, Consumer NZ says

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

- The Dominion Post

Comments

Special offers
Opinion poll

Where do you stand on political coat-tail riding?

If it gets marginalised voices into Parliament, I'm for it.

I'm against it - if you don't get the votes, you shouldn't be there.

It's just part of the political game.

Vote Result

Related story: Voters reject riding on the coat-tails

Featured Promotions

Sponsored Content