New Zealand Reaches Budget Surplus
October 14, 2015 Taxation in New Zealand
WELLINGTON – The government of New Zealand has seen a small victory, reaching a budget surplus after nearly seven years of deficits.
On October 16th the government of New Zealand announced that it has reach finally reached an operating surplus for the first time since 2008.
The operating surplus for the year ended June 30th 2015 was a narrow NZD 414 million.
The surplus came as a surprise to the government, as the forecast for the year was actually a NZD 684 million deficit.
The positive results were attributed to an unexpected rise in the revenues collected over the year, and an unexpectedly low level of government spending.
While announcing the results, the Finance Minister Bill English attributed the success to “careful stewardship” by the government over its daily expenses.
The surprise surplus lends extra credibility to the government’s aim to cut the rates on some forms of income taxes in 2017, although the Minister also added that over the next five years the government will be aiming to reduce its levels of debts to a maximum of 20 percent of the national GDP.
Photo By: Nick Kean