Hon Grant Robertson
Minister of

5 June

Government finances
in line with forecasts

The Government’s
surplus, revenue, expenses and net debt are all tracking in
line with forecasts, according to the latest monthly financial accounts
released by the Treasury today.

“The surplus in
the 10 months to the end of April was slightly higher than
expected – the Treasury reports that the operating balance
before gains and losses (OBEGAL) was a surplus of $3.4
billion at 30 April, which was $159 million higher than
forecast,” Finance Minister Grant Robertson said.

“The Budget Responsibility Rules require us to run
surpluses to ensure that we have money set aside for a rainy
day. This gives us the ability to respond to shocks like the
cattle disease Mycoplasma bovis, where Cabinet was able to
agree to stand alongside industry for our one shot at
eradication because we have ensured the Government is in a
strong fiscal position.

“The financial accounts
released today show net debt at 22.1% of GDP, exactly in
line with the Budget forecast. The forecasts show net debt
falling to 19.1% of GDPwithin five years. The Budget
Responsibility Rules require us to reduce net debt to 20% of
GDP within five years of taking office.

financial accounts show that core Crown expenses were $259
million below forecast in the 10 months to April. Meanwhile,
overall core Crown tax revenue was in line with the
Treasury’s expectations.

“Source deductions were
$211 million above forecast due to a higher-than-expected
seasonal upswing in April. Corporate tax was $92 million
lower than forecast due to variation in the timings of
expected tax assessment filings – meaning this is set to
reverse out when these filings show through in the May

“It is good to see these actual results
indicate that business profit growth is tracking as
expected, and that businesses are continuing to hire new
workers as the economy continues to grow.

“Treasury is forecasting annual economic growth
averaging at about 3% a year over the next four years, which
is within the range of other forecasters including the
retail banks, NZIER and the Reserve Bank,” Grant Robertson

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