New Zealand's state superannuation fund will help push the government into the black if debt levels decline according to forecast, Finance Minister Michael Cullen said on Thursday.
The country's net debt is expected to have declined to 8.7 percent of gross domestic product by June 30, Cullen said, compared with forecasts in the May budget of net government debt at 11.5 percent of GDP for 2004.
"Looking forward, we see within our grasp a situation where financial assets will equal gross debt. This will be the first time in decades that the government has been in the black in net terms," he said in speech notes to a business group.
The government has strengthened its long-term position through contributions from operating surpluses to the New Zealand Superannuation Fund, expected to total NZ$6.3 billion ($4.17 billion) in 2004/05, he said.
The fund stood at NZ$3.99 billion at June 30, from an initial transfer of NZ$2.40 billion in September 2003, guardians of the fund said on Thursday.
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