Thursday 26th January 2017
|Text too small?|
The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first five months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax.
The operating balance before gains and losses was a deficit of $768 million in the five months ended Nov. 30, compared with a forecast deficit of $1.7 billion in the Treasury’s Half Year Fiscal and Economic Update (HYEFU). That was largely due to core Crown revenue being 1.3 percent more than expected at $31.5 billion while core Crown expenses were 0.8 percent lower than forecast at $31.7 billion.
The tax take was also higher in the first four months of the year but the Treasury said today that it is too early to know whether that trend "is timing related or whether it will be permanent". Goods and services tax was 3.3 percent above forecast and corporate tax was 2.5 percent more than expected.
The HYEFU included $1 billion of the estimated fiscal cost of the Kaikōura earthquakes of $2 billion to $3 billion that couldn't be met by insurance proceeds, reprioritisation or existing budget allowances. The Treasury said while an initial estimate of EQC claims costs was included in the November results, a number of other costs are currently too uncertain to recognise in the actual results.
The HYEFU reduced the Obegal surplus by $200 million to $473 million for the 2017 fiscal year compared to the May budget before growing again by a combined $1.3 billion through to 2020, producing a forecast surplus of $8.5 billion in the year to June 2021. The Treasury lifted its economic growth forecasts for the next three years, with real gross domestic product now expected to grow 3.6 percent on an annual average basis in the June 2017 year, up from the 2.9 percent pace it projected in the May budget. On average, the Treasury expected growth to average 3 percent a year over the next five years.
Today's figures showed the actual operating balance was a surplus of $4.69 billion, compared to the HYEFU forecast of $1.2 billion. Net gains were $5.4 billion, or about $2.6 billion more than expected, mostly reflecting a drop in ACC claims liability.
Gross debt of $87.1 billion, or 34 percent of GDP, was about $1.1 billion below forecast, reflecting the impact of repurchases of government stock, the Treasury said. Net debt was in line with forecast at $63.5 billion, or 24.8 percent of GDP.
No comments yet
NZ wool market improves at weekly auction
Spark chases quantum leap in 2019 earnings in latest transformation
Steel & Tube annual profit drops 22% in 'highly competitive' construction sector
CBL says 1H earnings dropped 36% due to increased reserves
UPDATE: Spark annual profit climbs 13% as sales tick up, chairman Verbiest signals exit
IkeGPS raises $3.7 million in placement, plans another $1.3 million raise
August 18th Morning Report
FIRST CUT: Spark annual profit climbs 13% as sales tick up, chairman Verbiest signals exit
NZ dollar dips as rumour of White House departure, Spanish terror attack sap risk appetite
While you were sleeping: Trump unsettles Wall St