By Bernard Hickey
Treasury has reported an Operating Balance Excluding Gains and Losses (OBEGAL) surplus of NZ$2.304 billion for the eleven months to the end of May, which was slightly above the NZ$1.983 billion forecast in the May Budget (BEFU).
Treasury said the Government was on track to achieve its full year budgeted surplus of NZ$668 million.
"The OBEGAL surplus is expected to decline in June as growth in expenses is expected to outpace revenue. Most key indicators were consistent with BEFU forecasts, with the large timing variance in tax revenue from April of NZ$1.1 billion largely reversing as expected," Treasury said.
It reported that core Crown Tax Revenue of NZ$64.7 billion for the 11 months was 0.6% or NZ$364 million higher than forecast, "largely due to customs and excise duties ($188 million), source deductions ($182 million) and GST ($98 million). These variances are a mix of timing and permanent in nature."
Crown expenses at NZ$67.2 billion were in line with forecasts.
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