8 Jun 2010

Govt's operating deficit better than forecast

1:28 pm on 8 June 2010

The Government's operating deficit to the end of April turns out to have been slightly better than expected.

Figures just out show that 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, coming in at $9.8 billion.

Net government debt stood at $27.8 billion, which at 15% of GDP is slightly higher than the 14.7% forecast last month.