New Zealand’s crown deficit has grown to $6.5 billion in the eleven months ended in May, more than $2 billion worse than forecast in Budget 2023. The shortfall was largely due to weaker tax revenue from corporate profits, which have been struggling against high interest rates. Core Crown tax revenue was $103.3 billion, but $2.2 billion below forecast. Core crown expenses were close to forecast at $115.1 billion but the missing tax revenue added $2.1 billion to the operating balance deficit of $6.5 billion. Net debt was $5.1 billion higher than forecast at $73.3 billion, or 18.9% of gross domestic product (or 39.5% using the old core debt measure at $153 billion).

Source: Stuff July 05, 2023 06:47 UTC