The Government says financial accounts continue to reflect the resilience of the economy and confidence in the Government’s economic recovery plan.

Minister of Finance Grant Robertson says the Crown accounts for the nine months to the end of March 2021 show both OBEGAL and the operating balance “remain better than forecast in the Half Year Economic and Fiscal Update (HYEFU) released in December last year”.

The operating balance before gains and losses (OBEGAL) was $5.2 billion better than forecast in the HYEFU.

Tax revenue was $69.9 billion, $4 billion above forecast due to higher than expected corporate and income tax, and GST revenue.

Net core Crown debt was 33.3% of GDP, $6.6 billion less than forecast.

“The economy’s robustness and confidence in the recovery has meant the Crown’s financial accounts are in better shape than expected,” Grant Robertson says.

“The Government’s vaccine rollout and careful re-opening of the borders provides further confidence as we focus on accelerating the recovery.

“Our resilience, however, will continue to be tested. The devastating impact of the COVID-19 pandemic on India is a painful reminder that we are still in a volatile and uncertain global economic environment. 

“Supply chain issues affect the economy. Some sectors and regions in New Zealand remain under pressure.

“While these results are strong, we do need to remember that we are still facing elevated levels of debt and OBEGAL deficits for some years to come as a result of the borrowing needed to support New Zealanders through COVID 19.

“Budget 2021 will reflect the economic conditions and revenue situation and take a balanced approach that continues to emphasise spending to areas and people where it is needed most alongside careful fiscal management.

“We have used our strong balance sheet in response to COVID and will continue to invest to meet our three priorities of keeping New Zealanders safe, accelerating the recovery and address long standing issues of climate change, housing affordability and child wellbeing. We will do all this while working towards reducing our debt levels,” Grant Robertson says.