"The government will continue to keep a careful watch on spending, while making the important investments in our economy and society."
Robertson will unveil his well-being budget on May 31, with the coalition fixated on levelling what they claim is an unequal playing field by offering targeted support.
Transfers and subsidies rose to $18.32b in the eight months through February from $16.53b a year earlier, but were still $132m below expectations. Treasury officials had anticipated higher KiwiSaver subsidies and more spending on official development assistance in its foreign aid programme.
The accounts show smaller net debt than forecast at $59.85b, or 20.4 per cent of gross domestic product, compared to $59.74b, or 21.2 per cent of GDP, a year earlier.
The residual cash deficit of $1.89b was in line with forecasts. Still, the Crown's cash flow statements show capital spending of $6.89b was $2.68b below expectations, including an $879m underspend on the purchase of physical assets at $5.7b.
The government last year flagged a $42b capital spending programme over five years to rebuild ageing and inadequate infrastructure. It's forecasting a $10.67b spend on physical assets for the year ending June 30, up from $7.67b a year earlier.
The Crown's operating balance was a deficit of $1.85b, compared to a forecast surplus of $1.91b. Changes in the discount rates used to calculate ACC's long-term claims and the Government Superannuation Fund's long-term liabilities and unfavourable shifts in exchange rates led to $4.2b of losses.
The Crown's net worth was $128.25b, or 43.7 per cent of GDP, below the $132.35b forecast, due to the operating deficit.