Govt posts 5 month surplus of $2.12 billion

By NZPA

Friday 31st January 2003

The Government today posted a better-than-expected $2.12 billion surplus for the five months to November 30.

That was $103 million ahead of forecasts released last month, Treasury said, due to crown expenses being $182 million below forecast.

Health expenses were the biggest contributor, with timing delays shaving $49 million off early estimates.

Costs for core government services, social security, transport, and heritage and culture were also below forecasts made in Treasury's December Economic and Fiscal Update, released on December 19.

Revenue for the five month period totalled $23.5 billion and expenses were $23.6 billion.

Total revenue was $79 million or 0.3 percent lower than forecast due mainly to devaluations of financial assets held by state-owned accident insurer ACC and disaster fund EQC.

Net government debt, which excludes the debt of state-owned enterprises, fell to $17.86 billion or an estimated 14.3 percent of gross domestic product.

Oberac (operating balance excluding revaluations and accounting policy changes), was $2.2 billion -- $188 million higher than forecast.

The operating balance for the six months ending December will be released on February 21.

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