The effects of the recession are still being felt in the Government's books which are showing tax revenue lower than expected.
Tax revenue for the four months to the end of October is down 9.4% or $1.6 billion on the budget forecast as businesses fare worse than expected, Treasury's financial statements show.
Treasury also reports there has been a noticeable rise in people seeking personal tax summaries which has resulted in more tax refunds being paid out.
Income from dividends, including Crown companies, was $394 million higher than forecast, however, helping lower the cash deficit. Most of that was delivered by energy companies Mighty River Power ($202m) and Meridian ($168m).
The operating deficit, once investment returns are excluded, is higher than forecast at $3.945 billion.