The Government is continuing to make progress in its aim to get its accounts back into black by the 2014-15 financial year.
Treasury yesterday released the accounts for the three months ended September which showed the important operating balance before gains and losses (obegal) was a deficit of $1.29 billion, nearly 23% lower than the $1.7 billion forecast in the Budget.
At the same time last year, the obegal was a deficit of $2.12 billion.
Core Crown revenue of $14.4 billion was 11% higher than forecast, largely due to individual tax and GST being $143 million and $108 million respectively. Expenses were lower.
Treasury said while GST was close to forecast, continued strength in gross ''other persons tax'' and lower-than-expected refunds contributed to the higher tax take. A lower-than-forecast level of corporate tax was due to provisional tax being lower than expected.
In September last year, core revenue was $13.5 billion.
Global sharemarkets continued to treat Crown investments well with gains on the portfolios coming in about $800 million higher than expected in the quarter, particularly in the New Zealand Superannuation Fund.
Also, actuarial gains on the ACC outstanding claims liability arising from discount rate changes resulted in unforecast gains of $812 million.
Treasury said the better-than-expected core Crown revenue and expenses result, together with the stronger gains, were the key reasons for the total Crown's operating balance, inclusive of gains and losses, recording a $539 million surplus compared with an expected $1.2 billion deficit.
