The finance minister is happy with the state of the government books, saying they’re broadly in line with expectations and show the economy is “resilient”.
For the three months to the end of September, the Operating Balance before Gains and Losses (OBEGAL) recorded a deficit of $2.6 billion, a little higher than forecast during in year’s Budget. Tax revenue was slightly below expectations, while expenses were slightly above forecast.
“The latest figures are broadly in line with forecasts,” Grant Robertson said in a statement. “They show the resilience of the economy despite the global challenges New Zealand finds itself facing. More people are in paid work which helps to ease cost of living pressures, while the government is there with them and supporting them with the recently announced childcare package along with the extended fuel tax cuts and half price public transport fares.”
New Zealand would continue to be impacted by events unfolding overseas, said Robertson.
Meanwhile, core Crown tax revenue was $133 million below forecast at $26.7 billion and core Crown expenses were $243 million above forecast at $31.2 billion.
“We continue to prioritise our spending and target support to where it is needed most while keeping debt in check and making important investments in New Zealanders security and wellbeing. This is the right and responsible approach in these uncertain times,” Robertson said.