Red ink for Government accounts

VERNON SMALL
Last updated 10:37 24/01/2014

Relevant offers

Politics

More aid for Cook Islands - John Key Anne Tolley's 'lab rats' call inflammatory political rhetoric MPs reject plea by Carterton balloon victim's family for new rules on bodies Wine Bill amendment to clarify origins Volunteer injured at speedway is furious no-one can be held accountable Maori Council ditches Donna Hall's law firm over TPP claim Solid Energy in 'precarious position', says John Key John Key optimistic TPP will pass despite collapse of talks John Key expects 'intense' weeks of TPP talks but rejects delay till October Cash injection possible for tackling domestic violence, John Key says

The Government's Budget was $400 million further in the red than forecast at the end of November, Treasury said today.

The operating deficit before gains and losses was $2.3 billion for the first five months of the financial year show.

Officials said the variation was mainly due to tax revenue being $514m lower than expected but that was tipped to reverse in coming months.

Continued strength in share markets around the world saw big gains for the Government's financial investments of $2.8b, which was $2b ahead of forecast..

That took the operating balance to a surplus of $2.3b - $1.6b higher than forecast. .

Net debt at $59.6b or 27.6 per cent of gross domestic product was close to forecast.

The figures included the sale of Air New Zealand shares which raised $365 million and saw a gain on disposal of about $52m.

When ACC and NZ Superannuation Fund investments in Air NZ are removed from the equation the estimated gain on disposal reduced to $46m.

Finance Minister Bill English said the books were still on track to reach surplus in the 2014-15 year, "but, as we have said many times before, this remains quite a challenge" .

"In particular, we need to remain focused and disciplined and now is certainly not the time to get loose with spending and fiscal policy - as some political parties are advocating," he said.

Ad Feedback

- Fairfax Media

Special offers
Opinion poll

Should the speed limit be raised to 110kmh on some roads?

Yes

No

Vote Result

Related story: 110kmh limit moves closer

Featured Promotions

Sponsored Content