WELLINGTON, Oct. 29 (Xinhua) -- The first government financial results for the new financial year show the continued strength of the New Zealand economy, despite the challenges of COVID-19, Deputy Prime Minister Grant Robertson said on Friday.
The Crown accounts for the three months to the end of September take into account the improved starting position from the previous financial year and the continued strength in economic activity. However, the current Delta outbreak has dampened this improvement, said Robertson, who is also finance minister.
The result of the stronger economy means core Crown tax revenue was 2.3 billion New Zealand dollars (1.65 billion U.S. dollars) above the Budget 2021 forecast, coming in at 24 billion New Zealand dollars. GST (goods and services tax) revenue was 184 million New Zealand dollars above forecast, owing to stronger than expected consumer demand, Robertson said in a statement.
The accounts also show the operating balance before gains and losses was a deficit of 5.4 billion New Zealand dollars, 0.8 billion New Zealand dollars higher than forecast. This is a result of the Delta outbreak which triggered a shift in Alert Level restrictions and the payment of government financial support, he said.
As a result, core Crown expenses at 31 billion New Zealand dollars, were 3.2 billion New Zealand dollars above forecast mainly owing to the payment of wage subsidies and COVID-19 resurgence support payments, he added.
Net core Crown debt was 33 percent of gross domestic product, which was lower than the 36.2 percent forecast, statistics show.
"This result is better than expected, particularly given the impacts of the current Alert Level restrictions," Robertson said.
A balanced approach has been adopted to protect New Zealand from the global COVID-19 pandemic, and this approach has been reflected in these results, he added.
As the country transitions to the new COVID-19 Protection Framework and the fewer restrictions that go with it, the prospects are strong for the economy to support the recovery and meet other challenges, he said. (1 U.S. dollar equals 1.39 New Zealand dollars) Enditem