Budget back in the black
A surge in tax revenue has pushed the Budget back into a surprise surplus in the first seven months of the financial year, boosting the Government’s hopes of getting the books back in the black this year.
The Treasury said the $77 million surplus operating balance before gains and losses was $712m better than the $635m forecast in December, reflecting higher tax revenue and lower expenses.
Core Crown tax revenue at $37.8 billion was 1.2 per cent ($456m) above forecast, mainly because of higher than expected corporate tax ($158m), other individuals’ tax ($158m) and source deductions ($146m).
That was partially offset by GST coming in $95m lower than forecast, mainly because of higher than forecast refunds to insurers.
Net debt was $61.8b, or 26.1 per cent of gross domestic product – $1.2b lower than forecast.
Finance Minister Bill English responded cautiously to the surprise surplus.
‘‘This is the first time the Government’s books have shown a part-year surplus since 2009,’’ he said.
‘‘Although it is too early to say whether we will have a surplus for the full 2014-15 year, this result demonstrates the strides we have made in improving the Government’s finances,’’ he said.
It will be not be known whether a surplus had been achieved until October, when the final accounts for the year are published.
‘‘The Government is continuing to responsibly manage its finances,’’ English said.
painted in 1626.