Resilient economy reflected in Crown accounts

  • Hon Grant Robertson

The Government’s financial accounts continue to reflect a resilient economy that has performed better than expected and puts the country in a strong position to respond to Omicron, Grant Robertson said.

The Crown Accounts for the five months to the end of November were more favourable than forecast in the Half-year Economic and Fiscal Update (HYEFU).

The Operating Balance before Gains and Losses (OBEGAL) deficit at $8.4 billion was $1.2 billion better than that forecast in HYEFU.

Tax revenue was $0.3 billion above forecast at $41.1 billion, due to better-than-expected corporate tax, while core Crown expenses stood at $52.8 billion, $0.4 billion below the HYEFU forecast.

“This better-than-expected result showed the strength of the economy as restrictions to contain the Delta outbreak triggered payment of wage subsidies and COVID-19 resurgence support payments to protect jobs and livelihoods,” Grant Robertson said.

Net core Crown debt stood at 34.5 percent of GDP, $0.6 billion less than forecast.

“New Zealand is in a stronger fiscal position compared with other developed nations and our accounts continue to outperform forecasts. This gives us the fiscal headroom to continue our balanced approach to meet the costs of Omicron while continuing to deal with long standing challenges such as climate change, housing and child wellbeing,” Grant Robertson said.

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