Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ govt operating deficit smaller than Budget forecast

NZ government operating deficit smaller than Budget forecast on underspend

By Paul McBeth

June 6 (BusinessDesk) - The government posted a smaller operating deficit than expected in last month's Budget forecast as an underspend in April offset a lagging GST tax-take.

The Crown's operating balance before gains and losses (obegal) was a deficit of $1.37 billion in the 10 months ended April 30, smaller than the $1.52 billion shortfall estimated in the May 15 Budget economic and fiscal update, and down from a deficit of $3.99 billion a year earlier. Core Crown expenses were $90 million below forecast at $57.88 billion with underspends across a number of departments, the biggest of which was at the Ministry of Business, Innovation and Employment. The tax-take was $111 million below forecast at $50.23 billion due largely to the timing of goods and services tax refund assessments, which are expected to reverse in May, though still up 4.8 percent from a year earlier.

Last month Finance Minister Bill English confirmed a return to Budget surplus in 2015 at $372 million, wider than the $86 million projected in the half year economic and fiscal update, with bigger surpluses projected after that as an accelerating economy helps bolster the government's books.

The corporate tax take was in line with the May forecast at $7.14 billion accrued in the 10-month period, and was up from $7.09 billion a year earlier. Income tax was $147 million ahead of forecast at $23.43 billion, up from $22 billion in 2013, while residential withholding tax was $61 million short of expectations at $1.7 billion, and down from $1.75 billion. GST was $194 million below forecast, though still up from $12.41 billion in 2013.

The Crown's residual cash deficit was $138 million below forecast at $6.51 billion, and lower than the $9.64 billion in 2013, due to a smaller than expected wage bill and capital expenditure.

Net debt was in line with the May forecast at $62.25 billion, or 28.1 percent of gross domestic product, while gross debt was $83.04 billion, or 27.5 percent of GDP.

The operating balance, which includes movements in the Crown's investment portfolio, was a surplus of $3.81 billion, $252 million ahead of forecast, and up from $2.81 billion a year earlier, with strong equity markets underpinning unrealised gains in the value of the New Zealand Superannuation Fund.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news