The New Zealand Government's operating financial balance was sharply lower than forecast in the first five months of the fiscal year.
The balance for the five months to 30 November was a deficit of $5.72 billion. A surplus of $1.4 billion was forecast previously.
The Treasury said the deficit was largely because of $4.2 billion in investment losses from various state funds and $1.4 billion losses arising from revaluations of workplace accident insurance liabilities.
Net Government debt stood at $3.45 billion - $1.47 billion lower than forecast, equating to 1.9% of Gross Domestic Product.
Two weeks ago, the Standard and Poor's ratings agency warned that New Zealand was at risk of a credit rating downgrade because of the deterioration in the Government's fiscal position.
In December, the Treasury issued new fiscal and economic forecasts showing rising debt levels and large budget deficits because of a poor outlook for the domestic and global economies.
