NZ government 10-month operating surplus tops forecast but insurance claims weigh
By Rebecca Howard
June 5 (BusinessDesk) - The New Zealand government's operating surplus was just above forecast in the first 10 months of the year but the result was weighed on by higher-than-expected insurance claim costs.
The operating balance before gains and losses (obegal) was a surplus of $3.41 billion in the 10 months ended April 30 versus a forecast of $3.25 billion in the budget economic and fiscal update, published May 17. That update is projecting obegal surplus of $3.14 for the year ended June 30.
Core Crown tax revenue at $65.3 billion for the ten months was close to forecast and core Crown expenses were $259 million lower than forecast at $66.1 billion.
The obegal result, however, was offset by the Accident Compensation Corporation’s higher than forecast deficit due to higher than expected claims related expenditure. Total insurance expenses were $4.28 billion versus a projected $3.95 billion. Of that, the majority is related to ACC.
Adding gains and losses to the obegal, the operating balance was a $6.54 billion surplus, which was $4 million above forecast. The net worth attributable to the Crown came in at $117 billion, close to forecast.
Net debt was $62.5 billion, $229 million below forecast. it was 22.1 percent of GDP and is forecast to fall to 20.8 percent of GDP for the full year. Gross debt was $87.48 billion versus a forecast of $87.65 billion.