The New Zealand government's operating deficit was wider than forecast in the first quarter of the financial year as the Crown took in less tax than expected in a subdued economy.
The operating balance before gains and losses (obegal) was a deficit of $2.1 billion in the three months ended September 30, $449 million, or 27% bigger than forecast.
Core Crown tax revenue was $13.5 billion, or 2.1% lower than expected, the Treasury says.
Source deductions and goods and services tax were $166 million apiece below forecast, reflecting lower-than-expected wage growth and private consumption.
Provisional tax was $103 million below forecast, it says.
Core Crown spending was 1.1% below forecast at $17.3 billion, with under-spending on welfare, education and finance costs. These were offset by higher-than-expected earthquake expenses.
The operating balance, including gains and losses, was a surplus of almost $100 million, or $1.2 billion better than expected, reflecting gains from the NZ Superannuation Fund and the Accident Compensation Corp's investment portfolios.
Gross debt amounted to $79.3 billion, or 38.8% of gross domestic product. Net debt was $54.9 billion, or 26.9% of GDP.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Big swings in Orion Health's share price ahead of key earnings announcement today
- TechDay and NetGuide publisher settles with liquidators, creditors left $2m short
- PM defends MPI as criticism over myrtle rust spread mounts
- NBR Rich List family unable to settle dispute over $264k
- MARKET CLOSE: NZ shares fall in light holiday trading
Most listened to
- Lawyer Adina Thorn discusses her decision to launch a class action against Carter Holt Harvey over its Shadowclad product
- Westpac senior economist Satish Ranchhod says student inflows continue to be a big driver of growth
- Spark chief executive Simon Moutter says getting in tune with your market is a major benefit from diversity
- Nevil Gibson reveals rising life expectancy rates could increase pension costs even higher
- NBR Radio: best of the week ended May 26, with Grant Walker