Crown accounts continue their positive trend


New Zealand’s economic recovery is reflected in the Government’s books which are again in better shape than forecast.

The Crown Accounts for the five months to the end of November were more favourable than forecast in the Half-year Economic and Fiscal Update (HYEFU).

The Operating Balance before Gains and Losses (OBEGAL) deficit at $4.3 billion was $1.9 billion better than that forecast in HYEFU.

“This was partly due to tax revenue coming in $0.7 billion above forecast, with GST revenue $0.4 billion above forecast. This shows New Zealanders have confidence in the economy and are spending domestically,” Grant Robertson said.

Core Crown expenses were $44.4 billion, $0.5 billion (1.2%) below the HYEFU forecast.

Net core crown debt was 30.9% of GDP, this was $0.9 billion less than forecast.

“The Government’s support for New Zealand’s businesses and workers through the COVID-19 pandemic has helped the economy get back on its feet quickly.

“This year our focus is on continuing that momentum, while also tackling some of the long-term challenges facing New Zealand – housing, climate change and child poverty.

“The country is in a stronger fiscal position compared with other developed nations, and we will carefully prioritise our spending to maintain the balance between short term needs and long term requirements.

“New Zealanders trusted us to keep them safe last year, and we will continue to make the tough decisions required to do that, while also keeping the economy moving in the right direction,” Grant Robertson said.