WELLINGTON - The Government says it is still on track for a budget surplus in the year to June 1999 despite lower than expected tax revenues.
Figures for the eight months to February 28 showed a $1.098 billion operating budget surplus in the period, just $79 million ahead of forecast.
In the
seven months to January the $1.236 billion surplus had been $522 million ahead of forecast.
The Government officially forecasts a small deficit for the full year of $52 million, but has been signalling for some time a surplus is likely. The Treasury said a surplus was still expected, as underlying strength continued in goods and services tax receipts and resident withholding tax.
In the eight months to February, revenue totalled $23.28 billion and expenses totalled $22.93 billion with earnings from state-owed businesses contributing $745 million.
The overall tax revenue was $51 million, or 0.2 per cent lower than forecast, while the Government spent $211 million less than it had forecast.
While still ahead of forecast, the overall surplus was affected by a switch in terminal tax and ACC payment dates for many taxpayers to April 7 from February 7.
Tax revenue was $309 million below forecast for the month, while ACC's surplus was $256 million below forecast.
"These variances are expected to reverse out by the end of the financial year [June 30]," said the Treasury.
"A full year surplus is still expected and is likely to be somewhat higher than the small deficit forecast in the December Economic and Fiscal Update. - NZPA
