Government operating surplus $1b ahead of forecast

The Government's operating surplus is running $1 billion ahead of forecast due to higher than expected investment income.

The Crown accounts for the six months ending December recorded a $4.4 billion surplus compared to the $3.4 billion forecast.

After taking out accounting changes, contributions to the New Zealand Superannuation Fund and the purchase of assets and advances such as student loans, the Government was left with a small cash deficit of $423 million.

A cash deficit of $860 million was forecast.

Treasury said tax revenue was broadly in line with forecasts as was government spending.

- NZPA