1 Dec 2022

Government finances in better shape than expected

10:55 am on 1 December 2022
Deputy Prime Minister Grant Robertson

Finance Minister Grant Robertson. Photo: RNZ / Angus Dreaver

The government's finances are in better than expected shape, with the tax take holding up, but expenses just above forecast.

Official figures show a deficit of $2.8 billion for the four months to October, about $270 million below the budget forecast.

The tax take was in line with what was forecast, at $36.2 billion, with higher income tax payments offsetting a slight dip in GST and the government's reduction in fuel taxes.

Overall revenue was also boosted by higher earnings from the emissions trading scheme.

Expenses were $500 million above budget, reflecting higher interest costs and delayed pandemic-related health costs.

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