The New Zealand government had a smaller than expected first-half operating deficit after Treaty of Waitangi settlement costs didn't eventuate in the period, and tax revenue was in line with forecasts.
The operating balance before gains and losses (obegal) was a deficit of $3.19 billion in the six months ended
December 31, 4.7 per cent smaller than expected in the December half-year economic and fiscal update, according to the Crown's latest accounts.
Core tax revenue of $27.34 billion was just 0.1 per cent off the HYEFU forecast, while core expenses of $34.14 billion was 0.8 per cent below forecast.
The main reason behind the lower expense line was $186 million of costs on Treaty settlements being delayed by complex negotiations, the Treasury said.
The government is trying to get its books back in the black in the 2014/15 financial year after taking serious hits from the global financial crisis and Christchurch earthquakes. In the update just before Christmas, Treasury forecast an obegal surplus of just $66 million in the 2014/15 financial year, down from the $197 million buffer flagged in the May budget.
