Government accounts show surplus, net debt on track
Hon Grant Robertson
Minister of Finance
5 July 2018
The latest Government financial statements show the books remain in a good position, with a strong surplus indicating that revenue and expenses are tracking in line with the Treasury’s Budget forecasts, Finance Minister Grant Robertson says.
The financial statements of the Government for the eleven months to the end of May were released by the Treasury today.
“The latest set of accounts show the Coalition Government is sticking to our commitment to run the books responsibly by running sustainable surpluses and keeping expenses under control,” Grant Robertson said.
“Core Crown tax revenue of $73.493 billion was in line with forecast. The Treasury said there was some variance within the sources of revenue due to timing issues which are set to reverse out next month. For example, corporate tax revenue came in 1.7% below forecast due to some large provisional tax filings that had been expected, but are now set to come through in June.
“Core Crown expenses of $73.018 billion came in $439 million (0.6%) below forecast. Again, part of this was due to timing issues, meaning much of the variance is expected to reverse out next month.
“The monthly variation in expenses meant the operating balance before gains and losses (OBEGAL) was a surplus of $5.228 billion in the eleven months to May – which was $447 million, or 9.3% above the Budget forecast.
“Likewise, the net debt reading of 20.1% of GDP was below forecast (20.4%) due to timing factors. This means it should read nearer to forecast next month. Core Crown net debt at the end of May was $1.8 billion lower than a year ago,” Grant Robertson said.
The full year accounts to the end of June will be released by the Treasury in early October.