Scoop has an Ethical Paywall
Work smarter with a Pro licence Learn More
Parliament

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

 

Crown accounts turn back to deficit in February

Crown accounts turn back to deficit in February


The Crown accounts have slipped back to a deficit of $269 million in the eight months to February, making the previous month’s flirtation with surplus short-lived but nevertheless encouraging, Finance Minister Bill English says.

The operating balance before gains and losses (OBEGAL) for the seven months to January showed a surplus of $77 million - the first time since 2009 that the Government’s books had shown a part-year surplus.

Revenue from some tax sources have remained higher than forecast in February, but not as far ahead as they were in January. “Other individuals” tax is $217 million ahead of forecast, and corporate tax $91 million higher, indicating a pleasing lift in profitability for some businesses. However, the February accounts show GST being $261 million lower than forecast. About $150 million of that is attributed to earthquake-related refunds to insurers. The rest of the GST shortfall is related to very low inflation leading to lower-than-expected spending on consumption.

The Government continues to do a good job of controlling its own expenditure with core Crown expenses in the latest eight-month period $312 million lower than forecast, though some of that relates to the timing of Treaty settlements so will reverse out in time. Taken over the year, core Crown expenditure for 2014/15 is forecast to be $4.1 billion lower than forecast in Budget 2011 when the Government first set the target of returning to surplus in 2014/15.

Advertisement - scroll to continue reading

Are you getting our free newsletter?

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.

“We’re continuing to manage the books carefully but lower inflation, while good for consumers, is making it less likely that the final accounts in October will show a surplus for the whole year,” Mr English says.

“Nevertheless, the fact that we’re a bit over one month, and a bit under the next, shows just how far we have come since 2010/11 when we had an $18.4 billion deficit. Next month’s Budget will produce new forecasts that I expect will take in to account further reductions in the inflation outlook.”

ends


© Scoop Media

Advertisement - scroll to continue reading
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines



Gordon Campbell: On Dune 2, And Images Of Islam


Depictions of Islam in Western popular culture have rarely been positive, even before 9/11. Five years on from the mosque shootings, this is one of the cultural headwinds that the Muslim community has to battle against. Whatever messages of tolerance and inclusion are offered in daylight, much of our culture tends to be hostile to Islam when we’re sitting in the dark, with popcorn.
Any number of movie examples come to mind, beginning with Rudolf Valentino’s role (over a century ago) as the romantic Arab hero in The Sheik...
More


 
 


Government: One-stop Shop Major Projects On The Fast Track

The Coalition Government’s new one-stop-shop fast track consenting regime for regional and national projects of significance will cut red tape and make it easier for New Zealand to build the infrastructure and major projects needed to get the country moving again... More

ALSO:


Government: GPS 2024: Over $20 Billion To Get Transport Back On Track
Transport Minister Simeon Brown has released the draft Government Policy Statement (GPS) on Land Transport, outlining the Coalition Government’s plan to build and maintain a transport system that enables people to get to where they need to go quickly and safely... More

ALSO:

Government: Humanitarian Support For Gaza & West Bank

Winston Peters has announced NZ is providing a further $5M to respond to the extreme humanitarian need in Gaza and the West Bank. “The impact of the Israel-Hamas conflict on civilians is absolutely appalling," he said... More


Government: New High Court Judge Appointed

Judith Collins has announced the appointment of Wellington Barrister Jason Scott McHerron as a High Court Judge. Justice McHerron graduated from the University of Otago with a BA in English Literature in 1994 and an LLB in 1996... More

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels


 
 
 
 

Join Our Free Newsletter

Subscribe to Scoop’s 'The Catch Up' our free weekly newsletter sent to your inbox every Monday with stories from across our network.