Govt operating deficit grows as tax take misses target

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.

(BusinessDesk)


1 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

1 Comment & Question

Commenter icon key: Subscriber Verified

maybe, just maybe, the Govt spin that" all is well in the engine "will now stop, and they will send some one down to have a look.

The engine room has been blowing smoke for a good year or so, now the ship is slowing down.

Tme for Government to pay attention to the money earners =how do we get the top line up?

Reply
Share
  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7180 0.0000 0.00%
AUD 0.9365 0.0000 0.00%
EUR 0.6765 0.0000 0.00%
GBP 0.5786 0.0000 0.00%
HKD 5.5723 0.0000 0.00%
JPY 80.9810 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1234.8 -4.300 2017-02-17T00:
Oil Brent 56.1 0.140 2017-02-17T00:
Oil Nymex 53.8 0.020 2017-02-17T00:
Silver Index 18.0 -0.040 2017-02-17T00:

Indices

Symbol Open High Last %
NZX 50 7100.0 7103.8 7100.0 -0.09%
NASDAQ 5807.3 5838.6 5814.9 0.41%
DAX 11759.6 11775.4 11757.2 -0.00%
DJI 20564.1 20624.0 20619.8 0.02%
FTSE 7277.9 7307.1 7277.9 0.30%
HKSE 24077.9 24106.3 24107.7 -0.31%
NI225 19228.7 19275.4 19347.5 -0.58%
ASX 5816.3 5819.9 5816.3 -0.18%