The government's eight-month operating surplus was bigger than expected, primarily because it didn't spend as much as it anticipated, which helped offset a smaller company tax take than forecast.
The operating balance before gains and losses (obegal) was a surplus of $2.25 billion in the eight months ended February 28, more than the $1.91b projected in the Treasury's December half-year economic and fiscal update forecasts, though down from the $2.85b surplus a year earlier.
Core Crown spending shrank 7.4 per cent to $56.15b from a year earlier, and was $713 million below expectations, with some $200m of predicted education spending not occurring because of demand-driven factors and a further $200m of welfare benefits and impaired Crown receivables below forecast.
The Crown's tax take rose 5.9 per cent to $53.87b, some $137m below forecast. Corporate taxation was about $400m short of expectations, largely due to provisional tax estimates and assessments coming in below forecast. Bigger than expected customs and excise duties helped bridge the gap.
"The accounts show spending is stable, highlighting the government's careful fiscal management, with core Crown expenses below forecast," Finance Minister Grant Robertson said in a statement.