The Government accounts continue to look in a healthy state but the Treasury said yesterday the costs of the Kaikoura earthquakes were not included in the latest release.
The Crown accounts to the four months ended October showed an operating balance before gains and losses (obegal) as a deficit of $131million, $934million better than the expected $1.1billon deficit forecast in the May Budget 2016.
The obegal is the most important indicator of the health of the Crown accounts.
At the corresponding time last year, the deficit was $478million.
However, the financial markets have again proved helpful to the Government as the New Zealand Superannuation Fund provided gains of $870million to the operating balance.
ACC actuarial gains for the period were $1.7billion, resulting in a surplus of nearly $3billion, $3.2billion higher than the May forecast of a $227million deficit. At the corresponding time last year, the operating balance was a deficit of $867million.
Neither Finance Minister Bill English nor any opposition finance spokesmen or women made any comment on the accounts.
Chief government accountant Paul Helm said core Crown tax revenue at $23.2billion was $671million, or 3%, higher than forecast and $1.1billion higher than for the corresponding period last year.
Higher-than-forecast provisional tax and portfolio investment entity tax led to higher-than-expected forecast corporate tax of $300million.
While private consumption was close to forecast, residential investment and inbound tourist spending were both above forecast, contributing to higher-than-forecast GST of $275million.
Core Crown expenses were close to forecast at $25.3billion, he said.
Residual cash was a deficit of $490million, $1.6billion lower than forecast, primarily reflecting higher-than-expected core Crown tax receipts of $1.53billion. As a consequence, net debt was $1.7billion lower than expected at 24.8% of GDP.
