Accounts reinforce need for careful management
07 November 2012
Crown accounts issued today, showing core Crown spending and revenue
slightly below forecast for the three months to 30 September, reinforce
the need for careful financial management, Finance Minister Bill English
“The accounts confirm that the Government is keeping its
spending under control, but that revenue can be affected by the
uncertain global economic situation and its impact on New Zealand,” he
says. “This effect will continue.
“As we work to reduce our
deficits and meet our target of returning to surplus by 2014/15, we will
need to remain prudent with new spending and ensure existing spending
delivers better public services and good value for taxpayers.
important in a world where economic and financial market conditions
remain difficult and unpredictable. We need to remain on top of the
factors we can control, so we can minimise our debt and have a strong
The operating deficit before gains and losses was
$2.12 billion in the first three months of the financial year – or $449
million above Budget forecasts.
Core Crown tax revenue was $295
million below forecast, and core Crown interest revenue was $147 million
lower than expected. This was partially offset by core Crown expenses
being $201 million below forecast, including slightly lower than
forecast welfare expenses, lower departmental expenses and lower finance
Net debt at $54.93 billion was close to forecast at 26.9 per cent of gross domestic product.
Government is committed to getting back to surplus so we can start
repaying debt, resume contributions to the New Zealand Superannuation
Fund and target more investment at priority public services,” Mr English
says. “We are making progress, but we will need to restrain our
spending for some years to come, so we have those options when we return