Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


Deficit $760m better than forecast in 11 months

Hon Bill English

Minister of Finance

5 July 2013

Media Statement       

Deficit $760m better than forecast in 11 months

A further improvement in government tax revenue left the operating deficit before gains and losses $763 million smaller than forecast in the 11 months to 31 May, Finance Minister Bill English says.

“The improving economy suggests this lift in tax revenue is likely to remain through until the end of the financial year on 30 June,” Mr English says. “With the Government having locked in its spending track for the next few years, this pick up in revenue, as the economy and company profits improve, is flowing through into the Government’s books.

“This is a positive sign and confirms that the Government remains on track to return to surplus in 2014/15, so we are in a position to have choices about repaying debt and investing more in public services.”

The operating deficit before gains and losses was $3.26 billion in the 11 months to 31 May – or $763 million lower than the Budget 2013 forecast of $4.03 billion. If this improvement continues until the end of the financial year, the OBEGAL deficit will be $2.3 billion smaller than Budget 2012 forecasts.

Core Crown tax revenue was $502 million above forecast at $54 billion, most of which reflected higher corporate tax revenue.

Compared to May 2012, tax revenue was $3.5 billion higher for the first 11 months of this year, reflecting wage growth and an increase in the effective tax rate of sole traders, trusts and other individuals.

The partial sale of the Government’s shareholding in Mighty River Power was included in the latest financial statements. Gross sale proceeds of almost $1.7 billion were $185 million higher than forecasts, which were based on average receipts across the entire share sales programme.

These higher than forecast proceeds, along with other factors, contributed to the cash deficit being $768 million lower than forecast for the 11 months.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

False Electoral Return: John Banks Sentenced To Community Detention, Community Work

“The conviction of John Banks today is another sad chapter for John Banks and the ACT Party”, says Labour candidate for Epsom Michael Wood.

“Mr Banks was found guilty of electoral fraud in June. Regardless of what sentence is handed down, his reputation is in tatters. Sentencing is a matter for the court, and publicly deriding him further brings little benefit.”

“With the conviction confirmed, it is time for the ACT Party to step up to the mark and apologise to the people of Epsom. Mr Banks has suffered the consequences of his actions, but so far the ACT Party has gotten off scott-free” More>>

 

Parliament Today:

Gordon Campbell: On The Rise Of ISIS And Labour

While global attention got distracted by the fate of MH17 and the atrocities in Gaza, the world’s other mega ‘bad news’ story – the rise of ISIS-led fundamentalism in Iraq – has reached a tipping point. More>>

ALSO:

Rebuild: Christchurch City Council Releases Milestone Report

The Cameron Partners report says the Council may need to find an additional $783 million to $883 million by 2019... Options Cameron Partners proposed include increasing rates, borrowing more, maximising insurance payments, and freeing up capital from its commercial assets. More>>

ALSO:

Parliament Today: Parliament Adjourns

The 50th Parliament has adjourned for the final time. After the completion of the adjournment debate, MPs left for the campaign trail with Parliament to be dissolved on August 14 ahead of the September 20 election. More>>

ALSO:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Employment: Labour Will Raise Minimum Wage, Restore Work Rights

A Labour government will raise the minimum wage $2 an hour to $16.25 and restore work rights to ensure the benefits of economic growth are shared fairly by all New Zealanders, Labour Leader David Cunliffe says. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news