Sharechat Logo

Govt's surplus runs ahead of forecast

Wednesday 16th January 2019

Text too small?

The government’s budget surplus for the five months ended November was running slightly ahead of forecast due to it collecting more tax and incurring fewer expenses than forecast.

The surplus of $261 million was in contrast to Treasury’s expectations of an $88 million deficit for the five months.

Tax revenue in the five months was $141 million higher than expected at $32.9 billion while core Crown other revenue was $61 million more than expected at $35.9 billion. Core Crown expenses were $409 million less at $35.52 billion.

Treasury says the higher tax revenue was due to higher than expected deductions at source and GST, offset by a lower corporate tax take.

The lower-than-expected expenses mostly reflect underspending on the government’s social housing and KiwiBuild policies, which Treasury says are likely to be timing differences.

Gross government debt of $88.15 billion at Nov. 30 is $504 million less than expected and 30.3 percent of GDP, with net debt of $61.98 billion being 21.3 percent of GDP.

Treasury is forecasting a $1.72 billion surplus for the full year ending June.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

MARKET CLOSE: NZ shares rise; trading quiet ahead of upcoming earnings
NZ dollar firms against the Aussie heading into federal election
Fletcher-commissioned Deloitte report shows building material costs are low
RBNZ censures ANZ, prescribes risk capital calculation
RBNZ censures ANZ, prescribes risk capital calculation
SeaDragon shareholders back $4M injection to stave off liquidation
SeaDragon shareholders back $4M injection to stave off liquidation
Businesses get some reprieve in March quarter on cheaper prices
NZ manufacturing activity expands on month in April but down on year
Xero's CEO says it still has a cautious future in the US

IRG See IRG research reports