New Zealand Budget Deficit Better Than Forecast
January 23, 2015 Taxation in New Zealand
WELLINGTON – The New Zealand government may see a budget surplus sooner than expected, as the revenues fare better than expected over the course of last year.
On January 23rd the Treasury of New Zealand issued a new statement detailing the tax revenues collected over the five months ended November 30th 2014, showing that while revenues are lower than expected, the national deficit was still below forecast.
The core crown tax revenue for the five months reached NZD 1.6 billion, a level which is 6.7 percent higher than during the same period in the previous year, and approximately NZD 94 million below the government forecast issued on December 16th 2014.
The below-forecast level of tax revenues was partially offset by a decrease in government spending, which reached a level of NZD 39.9 billion, approximately NZD 67 million lower than expected.
The operating deficit of New Zealand over the five months reached a level of NZD 1.3 billion, a result which is NZD 466 million better than forecast in late 2014.
In December the Treasury forecast that the deficit for the full year would reach a level of NZD 572 million, reaching a surplus of NZD 565 million in the following year, although now some economic experts have suggested that the better-than-expected results may help the government to achieve a surplus earlier.
Photo By: Ari Bakker