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

 

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news