The interim Financial Statements of the Government of New Zealand for the seven months  ended 31 January 2026 were released by the Treasury today. The January results are reported  against forecasts based on the Half Year Economic and Fiscal Update 2025 (HYEFU 2025),  published on 16 December 2025, and the results for the same period for the previous year. 

The key fiscal indicators for the seven months ended 31 January 2026 were overall favourable  compared to the forecast. The Government’s main operating indicator, the operating balance  before gains and losses excluding ACC (OBEGALx), showed a deficit of $6.0 billion. This deficit  was $1.9 billion smaller than forecast. Net core Crown debt was lower than forecast  by $1.1 billion at $184.3 billion, or 41.9% of GDP. 

Core Crown tax revenue was $70.4billion, broadly in line with forecast (0.1% below),  with small offsetting variances across the major tax types. 

Core Crown revenue was $77.3billion, around $0.4billion (0.6%) below forecast. Revenue  from the NZ Emissions Trading Scheme was lower than expected due to the decline in the  NZU price since the forecasts were prepared. 

Core Crown expenses, at $83.1 billion, were $1.2 billion (1.5%) below forecast, reflecting lower spending across a range of functional classifications. 

The OBEGALx deficit was $1.9 billion less than the forecast deficit. This reflects the core  Crown variances mentioned above coupled with favourable results from Crown entities and  State-Owned Enterprises.  

The operating balance was a surplus of $4.0billion, $4.5billion stronger than forecast.  The variance reflected a favourable OBEGAL result of $1.8billion and strongerthanforecast  net gains on nonfinancial instruments ($2.8billion), partly offset by weaker-than-expected net  gains on financial instruments ($0.3billion). 

The core Crown residual cash deficit of $1.9billion was $0.8billion smaller than forecast,  reflecting lower operating outflows and higher capital cash inflows. 

Net core Crown debt at $184.3 billion (41.9% of GDP) was $1.1billion lower than forecast.  This variance was largely driven by the smallerthanforecast core Crown residual cash deficit  mentioned above. 

Gross debt at $220.6billion (50.2% of GDP) was $3.6billion lower than forecast. This reflected  lowerthanforecast issuances of Euro Commercial Paper and Treasury bills of $1.8 billion and  $1.5 billion, respectively.  

Net worth attributable to the Crown at $183.5 billion (41.7% of GDP) was $4.6 billion higher  than forecast. This favourable variance largely reflects the stronger operating balance result  of $4.5 billion, discussed previously.

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