Sharechat Logo

NZ government 10-month operating surplus tops forecast but insurance claims weigh

Tuesday 5th June 2018

Text too small?

The New Zealand government's operating surplus was just above forecast in the first 10 months of the year but the result was weighed on by higher-than-expected insurance claim costs.

The operating balance before gains and losses (obegal) was a surplus of $3.41 billion in the 10 months ended April 30 versus a forecast of $3.25 billion in the budget economic and fiscal update, published May 17. That update is projecting obegal surplus of $3.14 for the year ended June 30. 

Core Crown tax revenue at $65.3 billion for the ten months was close to forecast and core Crown expenses were $259 million lower than forecast at $66.1 billion. 

The obegal result, however, was offset by the Accident Compensation Corporation’s higher than forecast deficit due to higher than expected claims related expenditure. Total insurance expenses were $4.28 billion versus a projected $3.95 billion.  Of that, the majority is related to ACC. 

Adding gains and losses to the obegal, the operating balance was a $6.54 billion surplus, which was $4 million above forecast. The net worth attributable to the Crown came in at $117 billion, close to forecast.

Net debt was $62.5 billion, $229 million below forecast. it was 22.1 percent of GDP and is forecast to fall to 20.8 percent of GDP for the full year. Gross debt was $87.48 billion versus a forecast of $87.65 billion. 


  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:

NZ dollar rises on optimism for China-US trade deal
Steel & Tube recovery to include $5.6M of 2nd-half cost savings
Open Country challenges validity of Fonterra's 2018 milk price
Guest night growth slows; overseas visitors spent less time in North Island
Nib NZ first-half earnings slide 30% as claims outpace policy growth
Customer satisfaction in NZ banks rises despite Australian scandals
Perky services sector in Janary soothes fears over cooling economy
PFI doubles 2018 profit on valuation gains, underlying earnings fall short
Steel & Tube turnaround continues with 49% jump in first-half net profit
February 18th Morning Report

IRG See IRG research reports