# Government Finances Improve

> New Zealand's government posts smaller deficit as tax revenue rises and spending falls.
- Title: Government Finances Improve · RNZ | Shortify
- Summary: 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…
- Keywords: new zealand, government, deficit, tax revenue, spending, financial year, treasury, politics, news, Finances, Improve, RNZ
- Source: RNZ — https://rnz.co.nz/news/politics_election-2026/1793154/government-finances-end-the-year-in-better-shape
- Author: RNZ | Te Reo Irirangi o Aotearoa
- Published: 2026-10-08T01:27:29+00:00
- Read time: 1 min
- Topics: new zealand, government, deficit, tax revenue, spending, financial year, treasury, politics, news
## 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.
## Key takeaway

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.