NZ Accounts Saw Small Improvement

February 1, 2010 New Zealand Finance

Government, old and newThe New Zealand Crown accounts for the five months to November 30th saw a marginal improvement over earlier estimates, following a better than expected New Zealand Super Fund, ACC and EQC investment performance.

According to a New Zealand Government press release, published on January 29th, the Crown’s operating deficit before gains and losses for the time period was NZD3.7 billion. The figure is NZD700 million better than previously forecast in the 2009 Half-Year Economic and Fiscal Update. The operating deficits including gains and losses for the same period were reported to be NZD1.4 billion, which was NZD1.1 billion better than forecast.

Though the figures are positive, Bill English, Finance Minister of New Zealand , has warned that the news should be taken with some caution. Further, he claimed that the figures serve only to emphasize the need for responsible fiscal and economic management by the New Zealand Government through 2010. He also reminded New Zealanders that while the economy was recovering the Crown would still be facing budget deficits for another six years. Elaborating on this, the Finance Minister said “We face another six years of Budget deficits and we’re borrowing an average $240 million a week, every week, for the next four years.”

Photo by Velvet Android