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

 


Govt accounts closer to forecast in nine months

Govt accounts closer to forecast in nine months


An improvement in revenue and firm spending control left the Government’s financial accounts closer to forecasts in the nine months to 31 March, Finance Minister Bill English says.

The operating deficit before gains and losses was $1.66 billion for the nine months – or $199 million larger than forecast in the Half-Year Update in December.

The deficit had been almost $900 million larger than forecast in the eight months to February.

“As the Budget will show next week, we remain on track to a small surplus next year and increasing surpluses in following years,” Mr English says. “This will give us choices about repaying debt, investing a bit more in priority public services and, eventually, resuming contributions to the New Zealand Superannuation Fund.

“But to meet this challenging target, we must remain focused on responsible fiscal policy and sensible economic policy that supports ongoing economic growth, more jobs and higher incomes.”

The Government’s financial statements for the nine months to 31 March show core Crown tax revenue was $2.6 billion or 6.3 per cent higher than at the same time last year, reflecting stronger growth in source deductions, GST and corporate tax.

Core Crown tax revenue was $829 million below forecasts in the Half-Year Update, although that gap narrowed from $1.1 billion in February as some timing factors with corporate tax and GST began to reverse.

Core Crown expenses for the nine months were $423 million below forecast. This was spread across a number of departments and also included lower Treaty of Waitangi expenses due to timing delays in finalising some settlements.

Continuing strength in equity markets saw gains of $3.2 billion on financial instruments, which was $1.5 billion ahead of forecast. As a result, the Government’s operating surplus at $3.3 billion was $1.3 billion higher than forecast.

“The track to surplus is just one indicator confirming the economy is heading in the right direction,” Mr English says.

“As the Budget will show, the Government’s economic programme is making good progress in supporting more jobs, higher incomes, increased business investment and better public services New Zealanders deserve.

“Now is certainly not the time to put that at risk through untried and convoluted experiments such as fiddling with monetary policy, nationalising the electricity industry or returning to bloated and inefficient government spending.”


ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

PARLIAMENT TODAY:

Mt Eden Prison: Serco Inquiry Extended

A two month delay to the Government investigation into prison fight clubs shows the extent of problems within the Serco circus, says Labour’s Corrections spokesperson Kelvin Davis. More>>

ALSO:

Health And Safety: Late Addition Of National Security Provisions A Concern

The New Zealand Law Society has expressed its significant concerns at the last-minute addition to the Health and Safety Reform Bill of provisions for a closed material procedure for court proceedings where national security is involved. More>>

ALSO:

Rugby And Beer: World Cup Alcohol Bill Passes

ACT MP David Seymour’s Sale and Supply of Alcohol (Extended licensing hours during Rugby World Cup) Bill completed its third reading by 99 to 21... More>>

ALSO:

Gordon Campbell: On The Flag Campaign

So far, the public has treated the government’s flag campaign with something between disinterest and disdain. Most New Zealanders have instinctively seen through the marketing hype involved. More>>

Change For 2017: Local Govt To Decide On Easter Sunday Trading

The Government is to enable local communities, through councils, to decide whether retailers can open on Easter Sunday, Workplace Relations and Safety Minister Michael Woodhouse announced. More>>

ALSO:

(And Targets Worse Than Australia's): Foresters Abandoning Emissions Trading Scheme

The Government’s gutting of the Emissions Trading Scheme has caused foresters to leave and emissions to rise, says Labour’s Climate Change spokesperson Megan Woods. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news