Sharechat Logo

Budget to rein in deficit, says English

Tuesday 10th May 2011

Text too small?

Next week's Budget will set a path back to budget surplus, after Government financial statements today confirmed a $10.2 billion operating deficit before gains and losses for the nine months to March 31, said Finance Minister Bill English.

The deficit includes the Earthquake Commission's $1.5 billion estimated share of the costs for the February Christchurch earthquake, though it does not include the government’s support package for AMI, signed after March 31.

"Compared to the December forecasts, the accounts for March were broadly in line with February's results," English said.

"The Budget next week will confirm a very large deficit for the current year, including the immediate costs of rebuilding Christchurch.

"But it will also confirm significant improvements in the fiscal position over the next few years, before we return to surplus and start repaying debt. To achieve that, the Government has completed a careful and balanced review of its spending priorities, which we will outline in the Budget.

"It's essential that the government gets its own finances in order as quickly as possible, so it can join households and businesses in lifting national savings and reducing New Zealand's vulnerability to foreign lenders."

Government accounts for the nine months to March show a $10.2 billion operating deficit before gains and losses compared with an $8.9 billion deficit forecast in the half year update in December. EQCs costs for the February earthquake accounted for most of the difference.

At $3.3 billion, the operating deficit included gains and losses was $3.8 billion better than forecast, mainly reflecting gains from share investments by the New Zealand Super Fund and ACC, along with actuarial gains on ACC and Government Super fund liabilities.

The cash deficit was close to forecast at $12.4 billion for the nine months.



  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:

Property for Industry Limited (NZX: PFI) Strong Valuation Outcome, Penrose Acquisition
3rd December 2021 Morning Report
Fonterra Shareholders Fund (NZX: FSF) Fonterra provides Milk Price, earnings and Q1 update
Kiwi Property Group Limited (NZX: KPG) Signs Sale and Purchase Agreement with IKEA
2nd December 2021 Morning Report
The New Zealand Refining Company Limited (NZX: NZR) Launches Share Purchase Plan
Seeka Limited (NZX: SEK) Confirms Market Guidance
Australia and New Zealand Banking Group Limited (NZX: ANZ) Acknowledges Class Action Proceedings
1st December 2021 Morning Report
Livestock Improvement Corporation Limited (NZX: LIC) Appoints New Chief Executive