Crown accounts in deficit

The Government’s books are in deficit, despite stronger than expected corporate tax payments.

Yesterday, the Treasury posted the Crown accounts for the four months to October 31, showing a deficit of $308 million, slightly more than was forecast at the time of May’s Budget.

Treasury is still forecasting a surplus of close to $2.9 billion for the full year to June 30, 2018, which would be the third surplus in a row.

It said the timing of revenue can fluctuate through the year, so it was not unusual for variations in the early part of the year.

Core Crown tax revenue was $24.2b, with corporate tax $200m ahead of forecast, while customs and excise duties were $100m below expectations.

Spending was $200m ahead of forecast, ‘‘with some expenditure recognised earlier than expected’’, chief government accountant Paul Helm said in a statement.

Finance Minister Grant Robertson said the figures were ‘‘tracking along’’ with forecasts.

Crown net debt was well below forecast, at $62.4b, compared to the $64.3b which Treasury expected. However, notes accompanying the accounts said debt can fluctuate according to the timing of tax receipts.

‘‘This Government has committed to a responsible target of reducing net debt to 20 per cent of [gross domestic product] within five years of taking office,’’ Robertson said.

‘‘This is two years slower than the previous government, and is essential for investing in key areas such as health, education and housing as we look to close the social and infrastructure deficits which have appeared in recent years.’’