A surplus above forecast

By VERNON SMALL deputy political editor

The Government looks like banking a higher Budget surplus for the current year than it last forecast.

Financial statements for the nine months to March, released by Treasury yesterday, show the surplus will be slightly higher than the $400 million forecast in the Budget Policy Statement.

However, valuation movements in the unfunded liability to the Government Superannuation Fund and in ACC's outstanding claims liability "are likely to have a significant positive impact on the year end out-turn," Treasury said.

Figures to the end of March show an operating balance of $1831 million, $781 million ahead of detailed forecasts in last year's pre-election update.

The improvement was mainly due to taxation revenue $360 million ahead of expectations and expenses $177 million lower.

Surpluses from State-owned enterprises and Crown entities were $109 million above forecast.