The Government posted a small operating surplus in the seven months through January as tax revenue beat expectations, while costs were smaller than expected.
The operating balance before gains and losses was a surplus of $77 million in the seven months ended January 31, compared with a forecast deficit of $635 million and better than the shortfall of $1.06 billion a year earlier, the Treasury said.
That was due to a bigger than expected tax-take of $37.78 billion in the period, $456 million ahead of forecast, while core crown expenses were $249 million below forecast at $41.43 billion.
The Treasury said the operating balance before gains and losses (Obegal) fluctuated on a monthly basis because of the seasonal nature of some tax revenue and expenses.
It pushed out a forecast return to surplus until the 2016 financial year as persistently low interest rates erode the revenue from withholding taxes, household spending lagging estimates saps GST, and soft inflation keeps a lid on wages, crimping income taxes.
