Lower than expected operating expenses and higher than forecast customs and excise duties contributed to an operating balance before gains and losses (OBEGAL) deficit $121 million better than forecast for the five months to November, Finance Minister Bill English says.
New Zealand’s economy remains one of the fastest growing in the developed world, confirming that the Government’s economic programme is taking New Zealand in the right direction, Finance Minister Bill English says.
The Government believes an OBEGAL surplus is achievable this financial year, despite Treasury’s latest forecast today predicting a $572 million deficit (0.2 per cent of GDP) for the year to 30 June 2015, Finance Minister Bill English says.
New Zealand remains on track for solid economic growth, more jobs and rising incomes over the next few years, but falling dairy prices and low inflation will make returning to surplus this year challenging, Finance Minister Bill English says.
The Crown accounts for the first three months of the current financial year are broadly consistent with forecasts, but at the same time highlight the challenge of returning to surplus, Finance Minister Bill English says.
Cabinet has agreed on the details of the flag referendum process and every political party represented in Parliament has been invited to take part, say Prime Minister John Key and Deputy Prime Minister Bill English.