NZ budget back in surplus

The May New Zealand budget forecasts a deficit but the final accounts for 2014/15 show that it has been turned into a $NZ414 million surplus.

The New Zealand budget is back in surplus.

The Treasury's final accounts for 2014/15, released on Wednesday, show the government ended the financial year $NZ414 million ($A380 million) in the black.

The May budget forecasts a deficit of $NZ684 million, after the government had promised a surplus, and it faced a torrent of opposition criticism.

But since then stronger than expected tax revenue for the year that ended on June 30, and a tight rein on spending turned that around.

The New Zealand government can now say it kept the promise it made during last year's election campaign.

It's the first surplus Finance Minister Bill English has posted since National came to power during the international financial crisis, and then faced the cost of rebuilding Christchurch.

In its first year the deficit was $NZ18.4 billion.

"Careful stewardship over day-to-day expenses permitted the government to significantly reduce the size of deficits year after year, and in 2014/15 report a surplus," Mr English said.

"Returning to surplus in 2014/15 is a significant milestone, but the government is committed to continued prudent management."

Mr English says future revenue is likely to be lower than forecast because of the fall in dairy prices.

"There won't be any sense of the restraints coming off."


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Source: AAP



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