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

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news