Budget surplus running 10 per cent ahead of forecast

The Government's budget surplus was 10 per cent ahead of forecast in the five months to November 30, Treasury figures released today showed.

The operating balance was $3.96 billion, $387 million ahead of the $3.573 billion forecast. A $5.627 billion surplus is forecast for the year.

The operating balance excluding revaluations and accounting policy changes (Oberac) surplus was only $184m above forecast at $3.757 billion.

Core Crown cash flow from operations was $3.2 billion. This has been used to buy physical assets and for investing activities, including $1.7 billion contributions to the New Zealand Superannuation Fund. That left a cash surplus of $1.5 billion, which was close to forecast, Treasury said.

The residual cash is forecast to be around $1.4 billion at the end of the fiscal year. Treasury said that that cash build up was set to be used in the 2005/6 and 2006/7 years.

- NZPA