With the government books opened today it reveals the Labour administration has inherited a booming economy.
This includes a slightly larger-than-expected operating surplus of $1.1 billion for the last six months of 2017.
When combined with higher-than-expected Crown entity results, the surplus was $800 million more than forecast, Treasury said.
Core Crown tax revenue was $37.2 billion for the six-month period.
Overall core Crown tax was $600m higher than what was expected in the Government's half-year economic and fiscal update, released in mid-December.
Tax sent straight to IRD was $300m more than expected and the GST take was and $200m more than expected.
Core Crown expenses were $39.6b - slightly higher than the $39.5b forecast.
Finance Minister Grant Robertson said the figures were positive signs for the economy.
"We've seen consumer confidence improve over the past month, while businesses' confidence in their own activity – which is more closely correlated to economic growth than headline business confidence – has also been positive," he said.
"At this point in the year these results indicate the economy is tracking well. The Government is committed to seeing this continue and ensuring that we have sustainable growth and a fair share in prosperity for all New Zealanders."
The New Zealand economy will slow this year as labour constraints, changes in government infrastructure investment and lower dairy prices bite, economic research group Infometrics said this month.
"Lower levels of business and consumer confidence could also negatively affect business investment and household spending during 2018," said Infometrics chief forecaster Gareth Kiernan.
Infometrics now sees GDP growth slowing through the year to 2.6 per cent by early next year - compared with earlier forecasts of accelerating growth.
Prior to this latest report, Infometrics had been forecasting GDP growth averaging 3.4 per cent a year during this year and next.
While far from apocalyptic, that could put New Zealand's growth track below that of global expectations of around 3.1 per cent this year which could have implications for investment and the New Zealand dollar.
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Labour may have inherited a "booming economy" but they also inherited a huge government debt.
When Labour left in 2008 debt was just under $10bn (5.4% of GDP), in 2016 it was just over $60bn (24.6% of GDP).
Good one National, left the cupboard less then bare.
After 2 major South Island earthquakes, 2 ex tropical cyclones, a global financial crisis, export markets sanctioned, and many other adverse situations it is expected that the economy will suffer..