WELLINGTON: The New Zealand government's fiscal deficit for the six months of the 2011/12 fiscal year was worse than forecast because of a lower than expected tax take, the Treasury said on Monday.
The operating balance excluding gains and losses (OBEGAL), which strips out unrealised investment gains or losses, to Dec. 31 was a deficit of NZ$4.09 billion ($3.4 billion), or 0.1 percent worse than the revised forecasts from last week.
The department said core tax revenue income was 1.5 percent below forecast, with lower sales and income taxes offsetting higher corporate tax revenue. Crown expenses were 2.5 percent higher than forecasts.
The department said slightly weaker-than-expected growth data indicated corporate profits may be weaker for the financial year through the end of June, suggested there are downside risks to its tax revenue for the year.
The net debt balance was slightly less than forecast at 24.7 percent of gross domestic product.
The centre-right National-led government repeated last week that it was expected to post a NZ$370 million budget surplus in 2014/15 with the help of asset sales.
The Treasury department revised its forecasts contained in October's pre-election economic and fiscal update to reflect a weaker economy.
The budget deficit for the year to June 30 was increased to NZ$12.1 billion in 2011/12 from NZ$10.8 billion forecast made in October.
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