Tax revenue under forecast for seven months to Jan
Core Crown tax revenue was 0.8 percent lower than forecast at $29.9 billion in the seven months to the end of January, Treasury says.
Core Crown tax revenue was 0.8 percent lower than forecast at $29.9 billion in the seven months to the end of January, Treasury says.
Core Crown tax revenue was 0.8 percent lower than forecast at $29.9 billion in the seven months to the end of January, Treasury says.
That was due to underlying weakness in the economy resulting in a $285m shortfall in GST, a $157m shortfall in corporate tax, and a $120m shortfall in individuals' tax.
Partially offsetting the shortfall in tax revenue, source deductions (PAYE) were 2.6 percent, or $323m, higher than forecast.
"This was potentially due to wage and employment growth although volatility in recent data provides uncertainty over the cause," Treasury said.
Core Crown expenses were 0.9 percent lower than expected at $38.5b, while profits from State-owned enterprises and Crown entities were slightly higher.
The operating balance before gains and losses deficit remain largely in line with forecast at $6.2b.
Both the residual cash deficit, at $10.1b, and net debt, at just under $37b or 19.4 percent of GDP, were also close to forecast, as the previous month's residual cash variance reversed as expected, Treasury said.
Gross debt stood at $63b, or 33.1 percent of GDP, which was $14.3b higher than the same time last year. It was $1.5b above forecast, as government stock issuances were $1.2b above forecast due to strong investor demand, and derivative values were $320m higher.
As a result of the higher debt position, finance costs for the seven months ended January 31 were $1.7b, compared to $1.3b in the same period last year.
The operating balance deficit of $998m was much lower than the deficit of $4.8b forecast. That was due to NZS Fund gains being $1.8b above forecast, and an ACC actuarial gain $1.8b above the forecast loss of $889m.
Treasury noted the results were for the period before the devastating Canterbury Earthquake on February 22, the costs of which would be recorded in future accounts as costs were quantified.
The monthly financial statements are compared against monthly forecast tracks based on the 2010 Half Year Economic and Fiscal Update published in December.
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