Sharechat Logo

NZ govt operating surplus 9% above forecast for 11 months to May

Thursday 5th July 2018

Text too small?

The New Zealand government's operating surplus was 9 percent above forecast in the 11 months to the end of May but higher-than-expected Crown entity insurance claim costs offset some of the gains. 

The operating balance before gains and losses (obegal) was a surplus of $5.23 billion in the 11 months ended May 31 versus a forecast of $4.78 billion in the budget economic and fiscal update, published May 17. That update projected an obegal surplus of $3.14 billion for the year ended June 30.

The obegal result, however, was offset by the Accident Compensation Corporation’s higher than forecast insurance expenses. Total insurance expenses were $4.62 billion versus a projected $4.40 billion. Of that, the majority is related to ACC.

Adding gains and losses to the obegal, the operating balance was a $7.91 billion surplus, which was $475 million below forecast. The net worth attributable to the Crown came in at $118.58 billion, $389 million below forecast. 

Net debt was $57.49 billion versus a forecast of $58.57 billion. It was 20.1 percent of gross domestic product and is forecast to be 20.8 percent of GDP for the full year. Gross debt was $87.39 billion versus a forecast of $86.51 billion.

Core Crown tax revenue at $73.49 billion for the 11 months was close to forecast and Treasury officials said source deductions were $300 million above forecast, with recent data indicating the labour market may be stronger than was forecast in the 2018 Budget. Corporate tax was below forecast by $200 million, mainly owing to seasonal fluctuations in provisional tax assessments, which are expected to reverse in June, it said.

Core Crown expenses were $439 million lower than forecast at $73 billion. The variance was spread across a number of different departments. 


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Not much joy in Fellet’s Sky TV swansong
Ebos says underlying net profit boosted by animal care segment
KiwiRail operating earnings start to improve as Picton-Christchurch rail link reopens
Spark 1H profit dips 5.6% as Southern Cross withholds dividend
Power panel favours scrapping low-fixed charges, prompt payment discounts
February 20th Morning Report
FIRST CUT: Fletcher betters first-half guidance with 8% ebit drop
Meridian posts record 1H operating earnings, raises dividend
FIRST CUT: A2 more than doubles 1H net profit
NZD lifts as US-China return to negotiating table, US seeking stable yuan

IRG See IRG research reports