The Government's Budget deficit has continued to better expectations, due to a higher tax take and lower spending.
Excluding unrealised investment gains or losses, the Government's operating deficit stood at $1.3 billion for the three months to the end of September, which is 23% better than the Treasury forecast in May's budget.
The department says core tax revenue rose 1% to $14.4 billion due to rises in personal tax income and goods and sales tax returns.
Crown expenses came in below forecast because of delays in earthquake-related and Treaty costs.
If the Government's investments through the New Zealand Superannuation Fund and ACC are included, the Crown reported a surplus of $539 million.
Net debt stood at $60 billion, or 28.2% of gross domestic product.
The Government expects to return to surplus in the June 2015 financial year.
