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Govt books show unexpected monthly surplus

Large gains from government financial institutions have swung the government books into surplus.

Investments by the New Zealand Superannuation Fund and the Accident Compensation Corporation were, respectively, $207 million and $689 million above forecasts for the five months to November, according to the monthly financial statements from the Treasury.

That delivers an unexpected operating balance $706 million surplus compared to an anticipated $515 million deficit.

But even without those always-volatile results, the accounts show an unexpected improvement.

The ‘OBEGAL’ – operating balance excluding gains and losses – was, while still in deficit, at $3.0 billion, or $203 lower than expected.

Tax revenue has risen, while government spending is a fraction down. Core tax revenue is up $1.1 billion, or 5.3%, on the same period last year.

Expenses fell $50 million, or 0.2%. Corporate tax is down, by $291 million, to $2.7 billion, on the same period last year.

Income tax is up $100 million, or 1%, as is GST, up $18 million or 0.8%. The government’s increase in “sin taxes” is also paying off, up $80 million or 0.4%.

More by Rob Hosking

Comments and questions

All good news and plenty more to come over the next year.

These figures are as plausible as our inflation figures.

Yes, inflation figures primarilly driven by govt, local govt and quasi govt agencies puting up charges and prices. This shows that result reflected in the "govt books".
Unfortunately, the rest of us in the 'real' economy can't put up prices to get private enterprise 'books' in credit.

If they hadn't stopped contributions to the NZ Super Fund at the bottom of the market the surplus would be even higher.

The luck of JK is starting to work. A slow but steady climb out of the trough, plus Auckland house prices starting to make voters feel wealthy. National will be a shoo in by 2014.

Hang on, this is NZ you are talking about.
Considering most of the brains have gone, if the average joe, etc, feels more flush then it will just give all those who bother voting rose-tinted socialist green liberal types warm fuzzies to let a Labour/Green/Maori coalition get another spend-up opportunity. The Nats will certainly not be a shoo in.

Its distortionary reporting gains of the NZ Superfund in the government's books, because that money is at present inaccessible to the goverment.

Inaccessible..... thank god for that!

Oops, how did that happen? Supposed to be racking up ongoing monthly deficits to keep our globalist bankster buddies happy...hyper-national debt/austerity cometh.

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