The Government's fiscal honeymoon disappeared quickly when the release yesterday of the Crown accounts for the three months ended September showed a deficit of $545million.
The Government achieved an operating balance before gains and losses of $414million in the year ended June, meeting its election promise.
However, the books have gone from black to red, although the September obegal is still well below the Budget forecast of a deficit of $798million.
The operating balance, which includes gains and losses from Government investments, blew out to a deficit of $2.2billion.
The Treasury blamed a period of volatility in equity markets which meant the New Zealand Superannuation Fund recorded losses of $1.9billion - $2.4billion below forecast.
Core Crown tax revenue at $16.2billion was 0.6%, or $101million, higher than forecast.
Some tax types -source deductions and corporate tax - performed above expectations and others, such as GST performed below.
