Treasury Reports Another Surplus
June 3, 2016 New Zealand Taxation
The New Zealand government has once again seen a surplus, but drops in corporate income tax have left the surplus below expectations.
On June 3rd the New Zealand Treasury released the Financial Statements of the Government of New Zealand for the Ten Months Ended 30 April 2016 showing that the government has seen a positive operating balance before gains and losses (OBEGAL), although it was lower than forecast.
The government expected to see an OBEGAL surplus of NZD 1.234 billion, however, in reality it reached only NZD 297 million.
The below-expectation result was attributed to lower-than-anticipated Core Crown revenues, which were NZD 1.1 billion below forecast, reaching a total of NZD 56.7 billion.
The Core Crown Revenues were lower than previously expected, as corporate tax revenues were NZD 1.4 billion below forecast.
The Treasury believes that the corporate tax revenues were low due to timing variations, and the shortfall will be made up in coming months.
Photo By: Nathan Hughes Hamilton