Higher than expected tax revenue and lower Crown expenses saw the Government's operating surplus for the four months to October 31 beat forecasts by $739 million.
Crown Financial Statements released today showed the operating surplus was $2.525 billion against a forecast of $1.786 billion.
Tax revenue beat forecasts by $433
million at $14.774 billion. Tax revenue was boosted by higher than expected companies tax, which beat the forecast by $123 million. Also contributing was net GST, up $108 million on the forecast due to higher than expected consumption.
Core Crown expenses were $204 million below forecast at $14.279 billion. The lower expenses mainly reflected delays in implementing new initiatives. Health expenses fell $103 million below forecast, due to timing delays in implementing Ministry of Health programmes.
Social security and welfare expenses were $92 million below forecast, mainly due to delays in family support debt provisioning, but unemployment benefit expenses also contributed, reflecting the low unemployment rate.
Net Crown debt was $594 million below forecast at $14.147 billion, or 10.1 per cent of gross domestic product (GDP), against a forecast of 10.5 per cent.
Total revenue for the period was $20.889 billion, $110 million above forecast.
The forecasts were based on the 2004 Budget Economic and Fiscal Update.
- NZPA
