Smaller deficit

The Government’s accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. The operating balance before gains and losses was a deficit of $131 million in the four months ended October 31, compared with a deficit of about $1.1 billion forecast in the May budget. That was largely due to core Crown revenue being 3.3 per cent above forecast at $25.4b. Corporate tax revenue was $300m, or 10 per cent, above forecast, while GST was $275m, or 4.5 per cent above the Treasury’s estimate.