Budget deficit more than forecast

The NZ government has reported a $NZ1.8 billion budget deficit in the six months to December 31, which is more than it forecast in December.

The New Zealand government has reported a $NZ1.8 billion ($A1.67 billion) budget deficit for the last six months of 2013 - more than it was forecasting in December.

The operating deficit before gains and losses was $NZ380m more than forecast in December's half-yearly update, mainly due to lower tax revenue across most tax types.

"At this stage, it is difficult to determine how much of the lower than forecast tax is temporary versus permanent but we expect this to become clearer over the next few months," Treasury said.

The government is aiming to deliver a budget surplus in the year to June 30, 2015.

In December it forecast the surplus would be $NZ86m.

The promised return to surplus from a massive deficit of nine per cent of gross domestic product has been seen as a big achievement of the National-led government.


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Source: AAP


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