New Zealand government four-month finances better than forecast

WELLINGTON (Reuters) – The New Zealand government’s finances for the four months to the end of October were better than forecasted, according to official figures published on Thursday.

a close up of text on a white surface: FILE PHOTO: Illustration photo of a New Zealand dollar note

FILE PHOTO: Illustration photo of a New Zealand dollar note

The Treasury department said core tax revenue was NZ$29.9 billion, which is NZ$2.9 billion above that forecasted in the Pre-election Economic and Fiscal Update (PREFU 2020) in September.

Core government expenses were $35.7 billion, $1.6 billion below forecast.

The operating balance before gains and losses (OBEGAL) was a deficit of $3.8 billion, and $4.8 billion less than the deficit forecast, mainly owing to the core Crown revenue and expenditure results.

“Overall, the Government accounts are holding up well, which is a result of the Government’s action to support the New Zealand economy through a once-in-a-lifetime economic shock,” Finance Minister Grant Robertson said in a statement.

Net core Crown debt was $97.0 billion, or 31.5% of GDP, which is $3.1 billion less than forecast.

New Zealand’s economy has bounced back from the impact of COVID-19, as the country virtually eliminated coronavirus domestically by closing its borders and using tough lockdown measures to stop the spread.

(Reporting by Praveen Menon; editing by Lisa Shumaker)

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