WELLINGTON, Dec 6 (Reuters) - The New Zealand government's fiscal position in October was worse than forecast because of a lower than expected tax take, the Treasury said on Monday.
The operating balance excluding gains and loses (OBEGAL), which strips out unrealised investment gains or losses, for the four months to Oct. 30 was a deficit of NZ$4.4 billion ($3.4 billion), or 79 percent worse than forecast.
The department said the bigger deficit was because company tax revenue was down around 28 percent because of the slow economic recovery, while consumers were also spending less resulting in lower goods and services tax income. Overall the tax take was around NZ$1.1 billion below forecast.
The net operating balance was a deficit of NZ$2.2 billion, 25.6 percent below forecast.
Net government debt stood at NZ$34.75 billion, which was 18.4 percent of gross domestic product, against a forecast of 17.8 percent.
The Treasury said gross debt of NZ$58.6 billion was 1.3 percent above forecast.
The government's net cash position, the difference between all income and spending -- was a deficit of NZ$7.45 billion compared with a forecast deficit of NZ$6.65 billion.
Last month, Finance Minister Bill English warned the government would run higher deficits than forecast in the short term due to a sluggish economy, with the picture expected to improve during 2011.
The government will release its half year economic and fiscal update on Dec. 14.
The Treasury forecast in the May budget an OBEGAL deficit of NZ$8.6 billion for the fiscal year to June 30 2011, an overall operating deficit of NZ$7.1 billion, and net cash shortfall of NZ$13.3 billion.
($1=NZ$1.31)
((Wellington newsroom tel +64 4 471 4234, fax +64 4 473 6212 wellington.newsroom@thomsonreuters.com)) Keywords: NEWZEALAND ECONOMY/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The operating balance excluding gains and loses (OBEGAL), which strips out unrealised investment gains or losses, for the four months to Oct. 30 was a deficit of NZ$4.4 billion ($3.4 billion), or 79 percent worse than forecast.
The department said the bigger deficit was because company tax revenue was down around 28 percent because of the slow economic recovery, while consumers were also spending less resulting in lower goods and services tax income. Overall the tax take was around NZ$1.1 billion below forecast.
The net operating balance was a deficit of NZ$2.2 billion, 25.6 percent below forecast.
Net government debt stood at NZ$34.75 billion, which was 18.4 percent of gross domestic product, against a forecast of 17.8 percent.
The Treasury said gross debt of NZ$58.6 billion was 1.3 percent above forecast.
The government's net cash position, the difference between all income and spending -- was a deficit of NZ$7.45 billion compared with a forecast deficit of NZ$6.65 billion.
Last month, Finance Minister Bill English warned the government would run higher deficits than forecast in the short term due to a sluggish economy, with the picture expected to improve during 2011.
The government will release its half year economic and fiscal update on Dec. 14.
The Treasury forecast in the May budget an OBEGAL deficit of NZ$8.6 billion for the fiscal year to June 30 2011, an overall operating deficit of NZ$7.1 billion, and net cash shortfall of NZ$13.3 billion.
($1=NZ$1.31)
((Wellington newsroom tel +64 4 471 4234, fax +64 4 473 6212 wellington.newsroom@thomsonreuters.com)) Keywords: NEWZEALAND ECONOMY/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.