3 Jun 2016

Govt records lower-than-expected surplus

11:55 am on 3 June 2016

The government have recorded a lower-than-expected surplus, due to a weaker tax take.

Excluding investment gains and losses, the operating surplus stood at $297 million for the ten months to April, compared with the $1.2b gain that had been forecast in May's budget.

Tax revenue came in below expectations at $56.7b, due to a smaller corporate tax haul.

Treasury is putting the discrepancy down to large corporate taxpayers delaying filing their assessments until May or June.

Expenses remained close to expectations, at $60.8m, and if investment gains and losses are included, the operating deficit is a larger than expected at $3.4b.

Net debt totalled $64.4b, or 26.3 percent of gross domestic product.

The Budget forecast growing surpluses and declining debt over the next four years, due to a growing economy and restrained government spending.

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