New Zealand government financial report out now
- Budget operating deficit NZ$2.93b
- Deficit is NZ$338m wider than projected in pre-election forecast published in August
- Tax revenue was NZ$122m less than expected (Tax revenue fell to 39% of GDP)
- Core government spending was NZ$176m more than projected (31.2% of GDP, lowest since 2008)
- Net debt at June 30 was 26.2% GDP
Also – comments from New Zealand finance minister English:
- Says exchange rate remains challenging for exporters
- Exporters will be looking forward to better results after recent currency declines
- Returning to budget surplus in 2015 “remains a significant challenge”
- Possible that tax revenue will continue to track below forecast in the 2014-15 year
- Drop in dairy prices will affect government revenue
- “Rather not speculate” on return to surplus in 2015 until half-year forecast
Headlines on Bloomberg
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