KEY POINTS:
The Government's operating surplus is $6.5 billion for the eight months ending February, almost $1.5 billion ahead of forecasts mainly due to higher than expected investment income.
Treasury said that after taking into account book-keeping changes and revaluations, the surplus was $5.59 billion, $507 million ahead of the forecasts made late last year.
After investments and advances such as student loans the Government had $1.23 billion in residual cash.
This was $1.4 billion ahead of forecast.
Treasury predicted the surplus cash available would fall before the end of the year as it was mainly due to delays in departmental spending and capital purchases.
The higher than forecast headline operating surplus has been revealed in the accounts earlier in the financial year and is largely made up of money that is not available for general spending.
The New Zealand Superannuation Fund earned $400 million more than expected, ACC $200 million and the Government Superannuation Fund $300 million.
There was also $300 million in higher than forecast foreign exchange earnings.
The books also continue to show a $11.7 billion gain in the Government's net worth mainly due to the massive revaluation of the rail network to $10.3 billion.
Finance Minister Michael Cullen has been dismissive of the revaluation saying it does not represent reality.
- NZPA
