NZ Deficit Better Than Forecasted

July 13, 2010 New Zealand FinanceNew Zealand Taxation

Usurers and FinanciersThe New Zealand Budget cash deficit was below previously forecasted levels, for the 11 months ended May 31st.

On July 12th the New Zealand Treasury Department released a statement revealing the country’s latest financial figures. According to the release, the total cash deficit for the period totaled NZD 7.73 billion, approximately NZD 86 million better than forecasted in the national budget. Excluding gains and losses the deficit was NZD 4.7 billion, an estimated NZD 1.1 billion below forecasts. The improvement has been attributed to several delays by the Government in its capital expenditures.

The tax revenue for the period was also NZD 243 million above projections. According to the Government, tax revenues were significantly affected by increased GST collections, which suggest a pickup in consumer spending. Further, Corporate Tax collections rose by NZD 93 million, primarily due to portfolio investment entities (PIEs) earning higher incomes over the period.

The Treasury figures also showed that the New Zealand net debt is NZD 25.4 billion, approximately 13.6 percent of the national GDP. Gross national debt is also NZD 685 million below estimates, at a level of NZD 52.6 billion, or 28.1 percent of GDP.

Photo by *TreMichLan*

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