NZ Budget Deficit Forecast Shrinks Amid Improved Tax Revenue
New Zealand's Treasury has forecast a smaller budget deficit and lower debt than initially projected in May.
The operating balance before gains and losses (OBEGAL) deficit is now estimated at NZ$8.73 billion ($4.94 billion) for the fiscal year ending June 30, 2027, down from the previously forecasted NZ$14.09 billion.
This improvement in the budget outlook is largely due to increased tax revenue and lower government spending than initially expected.
New Zealand Finance Minister Nicola Willis attributed the better-than-expected performance of the economy in the last financial year to higher tax revenue and lower government spend, adding that there are still risks associated with ongoing global economic instability, particularly in the Middle East.