Govt books run further ahead of forecasts

1.00pm

Just over a week after revised budget figures were released, Treasury today put out fresh figures showing the operating surplus further in the black.

For the 10 months to April 30, the surplus was $211 million ahead of forecast at $7.2 billion.

Tax revenue was $84 million above forecast and core Crown expenses were $92 million below forecast.

The budget on May 27 forecast a surplus of $5.9 billion.

The Oberac (operating balance excluding revaluations and accounting changes) surplus was $6.79 billion, or $259 million ahead of forecast.

Treasury said both the operating surplus and the Oberac surplus would decrease over the two months to balance date to arrive at the budget estimate.

Tax revenue is normally recognised in the first nine months of the year whereas expenses are constant.

Better-than-expected returns from the Government Superannuation Fund investments and other state enterprises boosted income to $1.8 billion, $63 million above forecast.

Revenue for the 10 months was $51.5 billion, with expenses of $44.4 billion.

Core debt, which excludes that of state-owned businesses, was $14.59 billion, $160 million lower than forecast, reflecting improved cash flow from operating activities and delays in investment activity, the Treasury said.

Net debt was 11.0 per cent of gross domestic product, compared with a forecast 11.1 per cent.

- NZPA