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.
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)