Strong global sharemarkets continue to pay dividends for the Government as investments by the New Zealand Superannuation Scheme and ACC again help lift the Crown's operating balance.
In the eight months ending February, the Crown's operating balance excluding gains and losses (obegal) was $3 billion, down $556 million on forecasts provided by Treasury.
However, the operating balance, which takes into account the gains and losses from investments, was a surplus of $4.3 billion, down $481 million on forecast.
When the February 2013 accounts are compared with the corresponding period last year, there is a substantial improvement.
While the operating balance was $4.3 billion this year, at the corresponding period last year there was a deficit of $8.8 billion. Actual gains for the 2013 period were $7 billion compared with a deficit of $3.5 billion in 2012.
The obegal at the same time last year was a deficit of $5.5 billion compared with a deficit of $3 billion this year.
Treasury chief financial officer Fergus Welsh said tax from source deductions was $266 million above forecast owing to a higher-than-expected tax rate. Total labour force earnings were in line with forecast.
However, the composition of the labour force had changed with a fall in employment concentrated at the lower end of the income scale. That meant the same amount of income was earned by fewer workers, increasing the average tax rate because of the progressive nature of the personal income tax scale.
Tax from other individuals was $326 million above forecast, primarily owing to higher taxable income being declared. Core Crown expenses were $370 million below forecast at $45 billion, largely because of delays in finalising Treaty of Waitangi settlements.
Finance Minister Bill English said the financial statements showed government spending remained under control.
''That is important as we remain on track to surplus in 2014-15. It will remain important beyond then because we will need to build up sufficient surpluses to provide choices around repaying debt and investing more in priority public services,'' he said.
