The Government budget for the first three months of the 2001/02 year is running $60 million ahead of budget, Treasury said today.
The budget operating balance for the three months to September 30 was $559 million compared with the forecast of $499 million. The Government has budgeted for a $1.376 billion
surplus for the year.
Total revenue was $37 million higher than forecast while expenses were $131 million lower than forecast. These improvements were offset by surpluses from crown enterprises and state-owned enterprises being $108 million lower than forecast.
The Crown's net worth was $12.022 billion compared with the forecast of $11.08 billion while Crown net debt was $20.435 billion compared with the forecast of $20.955 billion.
The debt was estimated to be 18.1 per cent of GDP compared with the forecast of 18.6 per cent. The net debt position is around the best its been for two decades.
The improvement of the debt position was due to the flow-on effects of the opening net debt position, delays in capital spending of $155 million, which will reverse in coming months and additional issues of circulating currency of $47 million.
This was partly offset by lower-than-forecast net cash flows from operations of $130 million.
Tax revenue was $75 million below forecast mainly due to earlier than expected recognition of tax revenue in June 2001 which is now reversing.
Tax expenses were $131 million below forecast with social security and welfare spending being lower than forecast by $51 million and economic and industrial services being lower-than-forecast by $43 million.
GST tax collection at $2.448 billion was slightly above the forecast of $2.337 billion. Income tax at $4.308 billion was slightly below forecast of $4.412 billion while company tax was also below at $1.159 billion compared with the $1.307 billion forecast.
- NZPA
