Parliament

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

 

Crown accounts show careful fiscal management

Hon Grant Robertson

Minister of Finance


6 June 2019 PĀNUI PĀPĀHO

MEDIA STATEMENT

The Government continues to run a surplus, manage expenses carefully and keep debt under control.

The latest Crown accounts show expenses were within 0.4 percent of forecast in the ten months to 30 April. Net core Crown debt was at 21.2 percent of GDP, against the 21.6 percent forecast.

“The accounts show we’re managing the books carefully and living within our means by running a surplus,” Grant Robertson said.

The April accounts were the first to use a new Inland Revenue system for recording how much tax revenue the Government has collected. This is one of the reasons the April accounts show differences between the revenue numbers and the Treasury’s forecasts, which were compiled under the old system.

For example, the Crown accounts show core Crown tax revenue for the ten months to 30 April was $2.3 billion above the Treasury forecast due to higher-than-expected revenue for corporate tax, GST and ‘other persons’ tax. This affected the ten-month surplus number by about the same amount.

“The Government is taking the responsible approach of waiting to see how the variance between actual revenue and the forecasts shifts over the next few months. There is a chance that some of it reverses out due to timing differences, which have made it look like revenue is running ahead of the forecasts based on the old model,” Grant Robertson said.

The Treasury is working on building the new data into its next forecasting round. In the meantime there will be some large differences between the new actual monthly revenue numbers and the forecasts over the coming year.

“We always knew that there would be a transition period for the new revenue system. I have asked the Treasury and Inland Revenue to work closely together to make sure the forecasts align with the new data coming through,” Grant Robertson said.

Note to editors:


The previous process largely relied heavily on year-end assessments to estimate income tax revenue, particularly for large taxpayers. In contrast, the new “START” (Simplified Tax and Revenue Technology) system enables income tax revenue to be recognised more consistently during the year, as estimates are based on the most recently available data for each individual and corporate taxpayer. This process change will have the effect of bringing forward the recognition of some tax revenue, which makes it look like revenue is running ahead of the forecasts which used the old model.


ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

SOP For Gun Bill: New Measures For Modified Pistols

The new controls will:
• Prohibit short-barrelled semi-automatic rifles which currently are defined as pistols because they are shorter than 762 millimetres.
• Introduce tighter controls over pistol carbine conversion kits...
• Introduce tighter controls on carbine conversion kits for airsoft pistols...
• Prohibit firearms which contain a part known as a centrefire lower receiver...
• Clarify the regulation-making powers of the Arms Act in order to respond to new manufacturing technologies More>>

 
 

'Culturally Arranged Visitors Visa': Fix For Marriage Visa Issue

Earlier this year Immigration New Zealand issued guidance to front line Immigration staff that made it significantly harder for people to get visas to visit their partner. That guidance no longer applies with today’s announcement. More>>

ALSO:

Conflict Of Interest For Key Member: Budget Data Breach Investigation Shut Down

State Services Commissioner Peter Hughes has today terminated the investigation into how Budget-sensitive material was accessed at the Treasury and appointed a new inquirer. More>>

RNZ Report: Mysterious Foundation Loaning NZ First Money

A mysterious foundation that loans money to New Zealand First is under scrutiny, with a university law professor saying although it's lawful, it fails to provide the transparency voters need in a democracy. More>>

Justice: Criminal Cases Review Commission Established

“We’ve seen how our justice system can very occasionally get things spectacularly wrong, even with rights of appeals, and there needs to be a chance for the innocent on the right grounds to seek a final review of their case...” More>>

ALSO:

Gordon Campbell: On Why Sustainable NZ Isn't Self-Sustaining

Asking whether this new, environmentally focussed party can make the 5% MMP threshold may be the wrong question, though. It's more achievable goal would be to knock the Greens below the 5% threshold ... More>>

ALSO:

Report On Consultation: Future Of Tomorrow's Schools

“The 1989 Tomorrow’s Schools reform introduced one of world’s most devolved schooling systems where each school operates largely in isolation of each other... It empowered local communities and modernised an overly bureaucratic system but also led over time to uneven outcomes between schools.” More>>

ALSO:

National Education Doc:

Queensland Fires: NZ Firefighters Helping Battle Blazes

Twenty-one New Zealand firefighters are departing for Australia to help fight the wild fires that have been raging in Queensland for the past nine weeks. More>>

ALSO:

In NZ:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels