WELLINGTON: The New Zealand government will miss its long-awaited budget surplus this year because a slump in dairy prices and low inflation have hit tax income, Finance Minister Bill English said on Tuesday.
English said a deficit of NZ$572 million (convert) was now expected for the year to June 2015 compared with a surplus of NZ$297 million forecast in the pre-election economic and fiscal update in August.
"While things are working well for New Zealand households, they make it a bit tougher for the government's books," English told reporters after delivering the government's half year economic and fiscal update.
He added that a surplus remained achievable this year, although future year surplus forecasts were also reduced.
The government's net debt level was forecast to peak at a slightly lower level this year, with a faster rate of reduction in future years.
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