Crown accounts reflect Govt focus on securing recovery

The Government’s ongoing support to secure the economic recovery continues to be reflected in the Crown’s financial accounts.

The Crown accounts for the ten months to the end of April 2021 show both the operating balance before gains and losses (OBEGAL) and the operating balance are better than forecast in Budget 2021 in May.

The OBEGAL was a deficit of $5 billion, $3.6 billion better than forecast in May’s budget.

Tax revenue was $79.1 billion, $2 billion above forecast due to higher than expected corporate and income tax, and GST revenue.

Net core Crown debt was 33.9 percent of GDP, $2.6 billion less than forecast.

“The continued strength of the economy and confidence in the recovery has meant the Crown’s financial accounts are in better shape than expected,” Grant Robertson said.

“We cannot, however, afford to be complacent. Ongoing COVID-19 outbreaks overseas shows the global economic environment remains volatile. Supply chain issues still affect the economy. The recovery remains uneven among some sectors and regions in New Zealand.

“While these results are encouraging, we are still facing elevated levels of debt and OBEGAL deficits for some years to come as a result of the borrowing needed to support New Zealanders through COVID 19.

“Budget 2021 took a balanced approach, keeping a lid on debt while targeting support to where it is needed most to accelerate the recovery and tackle long-standing issues around climate change, housing and child wellbeing,” Grant Robertson said.