The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax.
The operating balance before gains and losses was a deficit of $131 million in the four months ended October 31, compared with a deficit of about $1.1 billion forecast in the May budget. That was largely due to core Crown revenue being 3.3 per cent above forecast at $25.4b. Corporate tax revenue was $300m, or 10 per cent, above forecast, while GST was $275m, or 4.5 per cent above the Treasury's estimate.
The increase in the corporate tax take mainly reflected variances in provisional tax and PIE tax, which indicate that corporate profits are higher than expected, the Treasury said. By contrast, core Crown expenses were close to forecast at $25.3b, with variances including $184m of Treaty settlements forecast but not yet signed off.
Net debt was $62.5b, or 24.8 per cent of gross domestic product, compared with a forecast of $64.3b, or 25.5 per cent of GDP.
As at October 31, total Crown assets were valued at $291b and liabilities at $192.9b, leaving the Crown's share of net worth at $92.3b. The operating balance was about $3b, compared to a forecast deficit of $227m, the Treasury said.
