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Government's books beat forecast

NZ Newswire logoNZ Newswire 25/01/2017
The Beehive at Parliament. © Hagen Hopkins/Getty Images The Beehive at Parliament.

The government's books have once again bettered Treasury forecasts with the deficit for the five months to the end of November more than $900 million less than what was predicted.

The operating balance, before gains or losses, was a deficit of $768m rather than the $1.704 billion forecast by the Treasury at December's Half Year Economic and Fiscal Update.

Chief government accountant Paul Helm said the difference of $936m was down to a higher tax take and lower expenses than forecast.

It was boosted by core Crown tax revenue of $28.8b - $460m more than forecast and $2.5b higher than for the same period a year earlier. GST revenue beat forecasts by 3.3 per cent and corporate tax was 2.5 per cent higher.

Core Crown expenses were 0.8 per cent less than forecast at $31.7b.

Mr Helm said the preliminary fiscal cost of the Kaikoura earthquakes in November is expected to be between $2b-$3b.

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