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.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On John Key’s Trip To Iraq

In the embedded press coverage on this trip, the absence so far of any evaluation of the wider context of what New Zealand thinks it is doing at Camp Taji has been striking. More>>


Labour: Parata Puts Brakes On Charter School Appraisal

“When the Ministry of Education recommended they compare the achievements of children at charter schools to those of their counterparts at state schools, the documents show Hekia Parata specifically prohibited them from doing so." More>>


Bad Day For Universities: Gun, Bomb Threats On Three Campuses

Dunedin Police are continuing their investigation into the threat made against the University of Otago. Staff are following a number of lines of inquiry, and police are working to verify the authenticity and source of the post. More>>


Gordon Campbell: On The TPP Deal Reached In Atlanta

Yes, the TPP has helped to knock a few points off the tariffs facing our exporters. Yet some of those alleged dollar gains may well have been made regardless over time – and without the negative baggage of the concessions in the non-trade areas (intellectual property, copyright extensions, investor-state dispute mechanisms etc) that the TPP deal also brings in its wake. More>> (Cartoon by Dave Wolland)

Public Summaries:


Wellington.Scoop: Serco – First The Prisons, And Now It Wants To Run The Trains

As the government continues its inquiry into Serco’s discredited administration of Mt Eden prison in Auckland, here in Wellington there’s further scrutiny of the British outsourcing company – because it’s competing to take over the running of our commuter trains. More>>


Pre-Signing: Gordon Campbell On The TPP Countdown

To date, the Key government has been unwilling to share any information about this TPP deal until it is too late for outraged public opinion to affect the outcome... the disclosure process is likely to consist of a similarly skewed and careful exercise in spin. More>>


Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news