The government is in better financial shape than expected on the back of a strong tax take.
The accounts for the four months ended October show a deficit of $131 million compared with a budget forecast of more than a billion dollars shortfall.
The Treasury said tax income was up 3 percent on the forecast, as healthy profits boosted company tax returns and record tourism numbers boosted goods and sales tax takings.
The official debt figures are also better than forecast with net debt falling to below 25 percent of the economy's worth.
The Treasury said the costs of the Kaikōura earthquake will not show up until later accounts.
The Budget's economic and financial forecasts are expected to be revised higher in the half yearly budget update due out on Thursday.