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

 


Revenue below forecast despite stronger economy

Revenue below forecast despite stronger economy

Despite stronger economic growth, government revenue continued to track below forecast in the seven months to 31 January, Finance Minister Bill English says.
“This makes it even more important for the Government to continue carefully managing its spending as we target a return to surplus next year,” he says.

The Government’s financial statements for the seven months show the operating deficit before gains and losses at $1.06 billion, or almost $640 million larger than forecast in the Half-Year Update in December.

This was due mainly to core Crown revenue at $38.3 billion coming in $830 million below forecast. It was offset partly by lower core Crown expenses and higher returns from crown entities.

“While we have spending under control, government revenue can move around and is therefore more difficult to forecast,” Mr English says. “We remain on track to surplus in 2014/15 but, as we’ve said, this is a challenging goal and we need to remain disciplined.

“The extent to which tax revenue is likely to remain below forecast will become clearer as officials work through forecasts for the Budget. Timing issues appear likely to see some of the current variation narrow by the end of the financial year.

“The lower revenue is at odds with other macro-economic indicators that have been broadly in line with the Half-Year Update forecasts and, if anything, point to even stronger economic growth in the second half of the 2014 fiscal year.”

Continuing strength in sharemarkets generated gains on financial instruments of $2.8 billion, which was $1.4 billion ahead of forecast. As a result, the Government’s operating surplus at $3.4 billion was $690 million larger than forecast.

Ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Werewolf: John Pilger, And Making War On China

In July, the New Zealand Defence Force is scheduled to join the latest round of Talisman Sabre, a huge training exercise that Australia carries out biennially in conjunction with all four arms of the US military.

Last time around in 2015, New Zealand contributed 650 personnel, 45 vehicles and two of our $NZ771 million dollar fleet of NH90 helicopters to this regional war game.

What’s weird is that Talisman Sabre is actually a rehearsal for an assault on China and its ability to defend itself. More>>

ALSO:

 
 

Urban Planning Report: Momentum Grows To Replace The RMA

A major new report from the Productivity Commission lays the foundation for action on the growing political consensus that the Resource Management Act and associated laws are failing both cities and the natural environment and need a complete rewrite. More>>

ALSO:

Vaping: Quitline Supports Decision To Legalise Nicotine E-Cigarettes

Today Associate Minister of Health, Hon Nicky Wagner has announced that Government are taking the proactive step of legalising nicotine e-cigarettes, a move which Quitline is pleased to hear and support wholeheartedly. More>>

ALSO:

Gordon Campbell: On The Labour/Greens Deal (And The NZDF)

If Labour and the Greens were hoping their Budget Responsibility Rules (BRR) agreement would foster an unlikely alliance then hey… mission accomplished! Because it isn’t every day that Sue Bradford, the CTU and Matthew Hooton speak with one voice, as happened yesterday. More>>

ALSO:

Until After The Election: Extension Of Report-Back Date For Havelock North Inquiry

Attorney-General Christopher Finlayson announced today that the report-back date for the independent Inquiry into Havelock North Drinking-Water has been extended at the request of the Inquiry’s Panel. More>>

ALSO:

Little Heading For Court: Apology Over Donation/Hotel Contract Claims Not Accepted

Today I want to publicly apologise unreservedly to Mr Hagaman for any hurt, embarrassment or adverse reflection on his reputation which may have resulted from my various media statements. I have offered that apology to the Hagamans. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news