Crown accounts reflect resilient economy

The resilience of the economy continues to be reflected in the Government’s financial accounts and puts the country in a strong position to respond to the ongoing pandemic, Grant Robertson said.

The Crown Accounts for the six months to the end of December were better than forecast in December’s Half Year Economic and Fiscal Update (HYEFU).

The Operating Balance before Gains and Losses (OBEGAL) deficit at $8.0 billion was $2.8 billion lower than that forecast in HYEFU.

Tax revenue was $1.5 billion above forecast at $51 billion, due to better-than-expected corporate profits and GST returns, while core Crown expenses stood at $62.9 billion, $0.7 billion below the HYEFU forecast.

“This better-than-expected result shows the strength of the economy as restrictions in response to the Delta outbreak were eased. Once again it demonstrates that our health-led approach since the start of the pandemic to protect lives and jobs and livelihoods has been the right one,” Grant Robertson said.

Net core Crown debt stood at 36.8 percent of GDP, in line with forecasts.

“New Zealand is in a strong fiscal position, with lower than expected deficits while our debt levels remain well below that of other developed nations we compare ourselves against. This gives us the fiscal headroom to continue our balanced approach to meet the costs of Omicron while continuing to deal with long standing challenges such as climate change, housing and child wellbeing,” Grant Robertson said.