Celebrating 25 Years of Scoop
Special: Up To 25% Off Scoop Pro Learn More
Parliament

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

 

Crown Accounts Better Than Forecast As Confidence In The Economy Grows

The Government’s books were stronger than expected as the economy continues to recover post COVID lockdown, the Finance Minister Grant Robertson says.

The Crown Accounts for the three months to the end of September show a lower than forecast deficit due to a better than expected tax take.

“Tax revenue was $2.1 billion above the PREFU 2020 forecast. $1.2 billion of that total came from GST showing consumers were spending, reflecting their confidence in the economy.

“The Treasury also reports source deduction revenue was better than forecast as salary and wage income for the period was better-than-expected, helped by the extension of the Government’s Wage Subsidy Scheme.

“Core Crown expenses were $1.1 billion below forecast, and the operating balance before gains and losses (OBEGAL) was $3.3 billion less than forecast,” Grant Robertson said.

“Net core crown debt was 30.5% of GDP, also better than the PREFU forecast of 31.7% of GDP. This compares to the average for advanced economies before COVID of about 80%. Debt servicing costs remain low and are forecast to stay that way.

“The Government’s decision that the best economic response to the COVID-19 pandemic was a strong health response has proved time and again to be the right one.

“There was no playbook for this health crisis, and we acted swiftly as the situation unfolded to support our businesses and workers. Those decisions helped us keep kiwis in jobs and mean we are now in a strong position to drive the economic recovery,” Grant Robertson said.

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.

© Scoop Media

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

 
 
 
 
 
 
 

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.