- Hon Nicola Willis
The latest set of government accounts supports other evidence that the economy is strengthening, Finance Minister Nicola Willis says.
The Financial Statements of the Government for the 11 months to May show core Crown revenue up $1.7 billion on the forecasts in the Budget and core Crown expenses $900 million lower than forecast.
“The biggest contributor to the improvement in Crown revenue was corporate tax revenue being $700 million higher than forecast. This is positive because it indicates an overall increase in profitability for the business sector.
“The headline operating balance indicator, OBEGALx shows the deficit for the 11 months was $6.8 billion, $3 billion lower than forecast at the Budget,” Nicola Willis says.
“These are a very encouraging set of accounts. New Zealand has been through a difficult few years, but Kiwis can take heart from the underlying strength of the economy.
“All the indications are that the conflict in the Middle East slowed growth in the second quarter of this year, but that the economy is already regaining the momentum it had developed before the conflict began.
“Oil prices have fallen towards pre-conflict levels, inflation expectations have declined, business confidence has rebounded, tourist numbers are up and exports are continuing to generate high returns.
“The Crown accounts for the full year won’t be finalised until early October and further variance is likely but these are positive signs the books will be in better shape than forecast at Budget.
“That means less debt and more proof that the steps the government has taken to fix the basics and build the future are working.”
