8 Jun 2010

Improvement in operating deficit

5:12 pm on 8 June 2010

The Government's operating deficit looked slightly better than expected in April.

The deficit, which strips out unrealised investment gains or losses, stood at $5.2 billion in the 10 months to the end of April - 11% less than was forecast in last month's Budget.

The Treasury attributes the result to Government spending coming in 0.8% below forecast, and tax revenue remaining on target, at $74 million.

However, the cash deficit, which dictates the Government's borrowing needs, was $275 million more than forecast.

Net government debt stood at $27.8 billion, which is 15% of gross domestic product, slightly more than the 14.7% forecast last month.