Surplus on New Zealand government books as fiscal yearend draws near

The New Zealand government achieved a surprise surplus in its spending in the 10 months ending April, reversing forecasts of a deficit, Treasury figures showed Tuesday.

The Financial Statements showed an operating surplus of 448 million NZ dollars (319.51 million U.S. dollars) compared with a forecast in last month's budget of a deficit of 555 million NZ dollars (395.83 million U.S. dollars).

Total government revenue at 78.5 billion NZ dollars (55.99 billion U.S. dollars) was higher than forecast while expenses were lower than anticipated.

Both corporate and sales tax takes were up on forecasts, but it was too soon to say whether this would continue through to the end of the fiscal year this month, said a statement from the Treasury.

The surplus highlighted the inherent volatility in monthly fiscal results, said Finance Minister Bill English, who set a target in 2011 of returning to surplus this fiscal year, but had to concede in recent months that it was unlikely.

"We won't know whether we will make surplus for the full year until we see the final accounts in October. But it's clear it will be a close run thing," English said in a statement.

April was the second month this financial year where the government had achieved a surplus, following a surplus of 77 million NZ dollars (54.93 million U.S. dollars) in the seven months to the end of January. Endi