New Zealand Cash Deficit Widens More Than Expected

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New Zealand's cash deficit was NZ$8.85 billion during the six months ended December 2009, the Treasury reported Friday. That was larger than the government estimate of NZ$7.92 billion. At the same time, the operating deficit before gains and losses was NZ$3.67 billion, smaller than the estimated NZ$4.51 billion.

Finance Minister Bill English said, "The longer-term challenge of getting the Government's books in shape remains as substantial as ever." The smaller-than-expected operating deficit figure reflected a combination of slightly higher tax revenue and lower expenses, English added.

Further, the treasury showed that core crown tax revenue was NZ$0.3 billion or 1.4% higher than forecast. Gross debt stood at NZ$47.52 billion, which was NZ$3.5 billion lower than forecast with Treasury bills on issue NZ$1.8 billion lower than expected.

New Zealand's cash deficit was NZ$8.85 billion during the six months ended December 2009, the Treasury reported Friday. (Market News Provided by RTTNews)