New Zealand government deficit runs NZ$3 billion below Budget forecast
New Zealand's government is set to report a deficit some NZ$3 billion smaller this year, on the back of higher tax revenue and lower spending, RNZ reports.
New Zealand's government is on track to close the financial year with a deficit about NZ$3 billion smaller than forecast at the Budget, RNZ reports. The improvement is driven by higher-than-expected tax revenue and lower government spending.
The report says the recovery on the revenue side is partly linked to economic activity and tax collection. The government has reiterated its goal of maintaining fiscal discipline and stressed that spending is being kept under control.
Economists say a smaller deficit is positive for the public finances, but that the growth outlook and interest-rate environment remain important. The final figures will become clear when the official accounts are published.
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