Wednesday, October 14, 2015

New Zealand government's operating balance: Surplus of NZ$414 million

FXStreet (Bali) - New Zealand government's operating balance excluding gains and losses (OBEGAL) for the 12 months to June 30 saw a surplus of NZ$414 million.

Headlines via Reuters

Operating surplus (OBEGAL) for year to end-June 2015 0.2 pct of GDP

Surplus for the first time since 2008, vs previous guidance for small deficit

Return to surplus was mainly a result of growth in tax take outpacing spending growth

In an uncertain global environment, prudent to stay focussed on steady reduction in public debt

Government finances need to be resilient, better to have lower debt given global risks

Lower dairy prices, lower inflation mean revenue likely to be weaker than previously forecast

Strong uplift in tax revenue now looks unlikely, focus on drivers of expenditure

NZ government net debt at end-June 2015 was 25.2% of GDP vs previous forecast of 25.7%

Expenses at 30.1% of GDP, down from 34% four years ago
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