New Zealand’s economic recovery has again been reflected in the Government’s books, which are in better shape than expected.

The Crown accounts for the seven months to the end of January 2021 were better than forecast in the Half Year Economic and Fiscal Update (HYEFU).

The operating balance before gains and losses (OBEGAL) deficit at $4.4 billion was $2.9 billion better than forecast in the HYEFU. Tax revenue was $53.6 billion, $1.8 billion above the HYEFU forecast.

“This result reflects the continued strength of current economic conditions. The improved revenue will be considered for the upcoming 2021 Budget Economic and Fiscal Update,” Grant Robertson said.

Core Crown expenses were $60.9 billion, $0.5 billion below forecast.

Net core Crown debt was 31.3% of GDP, $3.1 billion less than forecast.

“Our careful management of the Government accounts has meant we are in a good position to respond financially to alert level rises such as those we are currently experiencing.

“We are taking a balanced approach to managing the economy and keeping New Zealanders safe from COVID-19 and we will continue that approach.

“It’s important to this Government to protect our people and rightly share the financial burden with employers while we also provide support to those who need it the most,” Grant Robertson said.

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