$5.5bn government surplus way ahead of forecasts

The Government's operating surplus rose to $5.54 billion -- $2.3 billion ahead of forecast -- for the seven months of the financial year to January 2006.

Treasury said the ahead of forecast result was driven by previously announced factors such as the sale of assets by Meridian Energy ($0.7 billion) and higher investment returns ($1.3 billion) and lower than expected spending in health and education ($0.3 billion).

After taking into account bookkeeping items and revaluations the surplus was running at $3.7 billion -- $0.4 billion more than forecast.

The Government's net cash position after all investments and capital spending was $1.1 billion - $0.2 lower than forecast.

The tax take for the seven months was $28.8 billion, $1.78 billion or 6 per cent more than the same period in the last year.

Treasury said the growth was due to low unemployment, and increased corporate tax and GST take.

Total Crown revenue was $43 billion, while total expenses were $37.8 billion,

Gross debt was $36.5 billion, $1.7 billion ahead of forecast with net debt $10.4 billions slightly lower than forecast.

- NZPA