6 Dec 2010

Government books in worse shape than expected

10:02 am on 6 December 2010

Four months into the financial year, the Government's books are in worse shape than forecast in the May Budget.

The worse-than-expected figures are in line, though, with results published after the first three months of the financial year.

A $1.1 billion drop in the forecast tax take has helped push the operating deficit higher, but that has been largely offset by big investments gains from the New Zealand Superannuation Fund and ACC.

Overall, the operating deficit is $450 million more than forecast, at $2.2 billion.