By Elishya Perera
AUCKLAND, New Zealand (CWBN)_ The New Zealand government’s finances for the four months ending in October are stronger than anticipated according to official figures published today (Dec 3).
Accordingly, a deficit of $3.8 billion was reported for the relevant period, which is less than half of the amount projected prior to the election.
The Treasury Department pointed out that the rise in income and corporate tax, as well as the Goods and Services Tax revenue as a result of the surge in consumer spending, suggests that businesses had not been as hard hit by the pandemic as expected.
Moreover, $1.4b less was spent on the wage subsidy scheme, which resulted in lower government spending than projected, while the net debt level also grew at a lower percentage of 31.5 per cent in comparison to the projected 32.5 per cent.
Minister of Finance Grant Robertson said that the stronger than expected finances are a testament to the government’s response to the pandemic. “Overall, the government accounts are holding up well, which is a result of the government’s action to support the New Zealand economy through a once-in-a-lifetime economic shock,” he said.
Edited by Kaveesha Fernando
