From RNZ · RNZ | Te Reo Irirangi o Aotearoa · · 1m
Government Finances Improve
New Zealand's government posts smaller deficit as tax revenue rises and spending falls.
In brief
New Zealand's government posts smaller deficit as tax revenue rises and spending falls. New Zealand's government reported a $3 billion smaller deficit than forecast for the financial year ended June 2026, driven by higher tax receipts and reduced spending. Originally reported by RNZ.
Government Deficit Shrinks
The government posted a deficit of $8.7 billion for the financial year ended June 2026, $3.2 billion less than forecast.
Higher Tax Receipts
Tax revenue increased by $1.1 billion above forecast due to higher income, company, and GST payments.
Lower Government Spending
Government spending was about $1 billion less than the budget, with core crown expenses $900 million below forecast.
State-Owned Enterprise Impact
Earnings from state-owned enterprises dropped $1.6 billion below forecast due to lower wholesale electricity prices.
Net Debt Levels
Net debt levels were $186.8 billion, or 40.9 percent of the economy, slightly below forecast.
Next Steps
The government will publish accounts for the first three months of the new financial year in early November.
What to remember
New Zealand's government reported a $3 billion smaller deficit than forecast for the financial year ended June 2026, driven by higher tax receipts and reduced spending.
