November 8th, 2012
The Crown accounts for the first quarter of 2012-13 showed the deficit standing at $2.1bn, or $449m higher than forecast. Core Crown tax and interest revenue was lower than expected, partially offset by lower core Crown expenses. Tax revenue of $13.5bn was $295m, or 2.1% lower than expected.
Most major types of tax revenue were below forecast, the exception being other individuals tax revenue which was higher than expected, reflecting an increase in the effective tax credit paid by non-incorporated businesses.
Dividend revenue from state-owned enterprises was $248m higher than forecast. The slide in revenue flows underline how hard it will be for the Govt to hit its target of returning to surplus by 2014-15. Labour’s finance spokesman David Parker says the Crown accounts show the economy stagnating under National’s policies.
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