Parliament

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

 

Govt accounts show surplus above forecast


Hon Grant Robertson

Minister of Finance


4 April 2018


Govt accounts show surplus above forecast, net debt lower than expected

The Government’s accounts continued to track slightly better than expected in the eight months to the end of February, with the Government surplus nearly $500 million higher than the Treasury forecast in December, Finance Minister Grant Robertson says.

“The latest financial statements show that the Coalition Government is sticking to the Budget Responsibility Rules, which require us to run a sustainable surplus, keep net debt on track to fall to 20% of GDP in 2022 and to ensure that we manage Government spending responsibly by keeping it in line with previous governments,” Grant Robertson says.

“A strong jobs market this year has meant employment growth has been higher in recent months than the Treasury expected, meaning PAYE is above forecast. Greater residential investment and private consumption have boosted GST receipts, while a rise in customs and excise duties have also contributed to core Crown tax revenue coming in $692 million better than expected.

“The Treasury has said that most of the positive variance in revenue is expected to remain through the rest of the year. This reflects underlying economic conditions, with surveys of business and consumer confidence pointing to sustainable growth rates of about 3% over the next few years for the New Zealand economy.

“Core Crown expenses were close to forecast in the eight months to February. The operating balance before gains and losses was $2.85 billion, which was $494 million above what the Treasury had forecast in December. The surplus is $1.4 billion higher than the same time last year.

Meanwhile, core Crown net debt at the end of February was 21.1% of GDP, which was below the 21.7% expected by the Treasury at the Half Year Economic and Fiscal Update in December 2017.

“The Coalition Government has committed to a responsible debt track, reducing net debt to 20% of GDP within five years of taking office. This is two years slower than the previous government to give us room to make essential investments required to bring our core public services up to the standards New Zealanders expect and deserve,” Grant Robertson says.

ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Lest We Forget: ANZAC Day - WWI 100 Year Anniversary

The Governor-General, The Rt Hon Dame Patsy Reddy, GNZM, QSO, will represent the people of New Zealand at the 2018 Anzac Day commemorations in Gallipoli. On Anzac Day, Dame Patsy will speak at the Joint New Zealand and Australian Dawn Service in Anzac Cove, and at the New Zealand Commemorative Service at Chunuk Bair later that morning... More>>

 

HiveMind: Fair Enough? How Should New Zealanders Be Taxed?

Have Your Say - Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon. More>>

ALSO:

Gordon Campbell: On Thompson + Clark & Russia’s World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark ... More>>

ALSO:

Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>

ALSO:

PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in Europe for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>

ALSO:


Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>

ALSO:

Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages