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


Govt accounts track slightly above forecasts

Hon Grant Robertson

Minister of Finance

25 January 2018

Govt accounts track slightly above forecasts

The Government’s accounts for the five months to November 2017 show revenue and expenses tracking above the latest Half Year Economic and Fiscal Update (HYEFU) forecasts, Finance Minister Grant Robertson says.

Core Crown tax revenue of $30.4 billion came in $530 million above forecast. Corporate tax, income tax and the GST take all came in slightly above the forecasts in the Treasury’s HYEFU published in December. The November statements are the first to be compared against the HYEFU forecasts,” Grant Robertson says.

“While it’s too early to fully establish whether all of this positive variance will remain through the year, some of it is expected to remain. The numbers are an initial sign of how businesses have been performing and how consumers have been spending in recent months.

“The Government accounts released today follow a number of economic surveys in recent weeks, including the Westpac McDermott-Miller Employment Confidence Index, which showed NZ workers are saying job availability is the best it’s been in nearly 10 years, and that they expect this will continue to improve over the next year.

“Also in the news have been a number of business confidence surveys. Behind the headlines, these surveys show that measures of firms’ own activity – which are more closely correlated to future GDP growth than headline business confidence readings – are holding up and pointing to a sustainable growth rate in line with the Treasury’s HYEFU forecasts.

“Core Crown expenses of $33.3 billion during the five months to November were slightly above the $33.1 billion forecast. Treasury says this is because some expenditure was recognised earlier in the year than had been expected.

“The Government accounts show the Operating Balance Before Gains and Losses (OBEGAL) was a surplus of $125 million, compared to a forecast deficit of $457 million. Core Crown net debt was 22.2% of GDP at the end of November 2017, slightly below the 22.5% of GDP expected.

“This Government has committed through its Budget Responsibility Rules to the target of reducing Core Crown net debt to 20% of GDP within five years of taking office. This is a responsible move to ensure that we, and future generations, have the capacity to withstand economic shocks.

“By committing to a slightly slower debt reduction track than the previous Government, we are also freeing up capacity for urgently needed investment to close the social and infrastructure deficits that opened up in New Zealand in recent years,” Grant Robertson says.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Claims About The CPTPP

As a Tufts study usefully explained, some of the basic mechanisms of the original TPP (and the CCTPP is not radically different in this respect) would – in practice – contribute to income inequality, by further tilting the existing imbalance between those reliant on profit-taking as a source of income, and those reliant on wages...

Under the original TPP deal, the Tufts team estimated, 5,000 jobs would have been lost across New Zealand. More>>


Growing The Regions: Provincial Growth Fund Open For Business

The new $1 billion per annum Provincial Growth Fund has been officially launched in Gisborne today by Regional Economic Development Minister Shane Jones. ... More>>


22/2: Earthquake Memorial Service In Christchurch

"The theme of this year's service, 'Keeping their dreams alive" helps us look back at all that we've lost with a sense of hope and aspiration for the future,'' says the Mayor. "It also helps us to recall all those who came to our rescue and those who offered support at our time of need and what that meant to us." More>>


Submissions Closing: Mangroves Bill 'Designed To Bypass RMA'

Forest & Bird is releasing emails which show the Mangroves Management Bill is intended to completely override the safeguards of the Resource Management Act (RMA). More>>


EQC Shakeup: Chair Of Earthquake Commission Has Resigned

The Chair of the Earthquake Commission, Sir Maarten Wevers, has resigned following receipt of a letter from Minister Responsible for the Earthquake Commission, Dr Megan Woods expressing her displeasure with the performance of the Commission ... More>>


NZer Of the Year: Gender Pay Equity Activist, Kristine Bartlett – A Brilliant Choice

National Council of Women (NCWNZ) CEO and Gender Equal NZ Spokesperson, Dr Gill Greer says she’s delighted with news that equal pay champion, Kristine Bartlett, has been named New Zealander of the Year . More>>


Perceived Transparency: New Zealand #1 Least Corrupt Public Sector In The World

New Zealand's public sector is ranked the least corrupt in the world, according to Transparency International's 2017 Corruption Perceptions Index (CPI) released globally today. More>>


Reviews: Three-Year Work Programme For Education

The work programme includes the NCEA review, a review of Tomorrow’s Schools, developing a future-focused Education Workforce Strategy, a continuous focus on raising achievement for Māori and Pasifika learners, an action plan for learning support, an early learning strategic plan, a comprehensive review of school property. More>>





Featured InfoPages