WELLINGTON (Reuters) – The New Zealand government reported a larger-than-expected budget deficit for the 2023-24 year as lower growth hurt government revenue, the government’s accounts released Thursday showed.
The government recorded a budget deficit of NZ$12.85 billion ($7.79 billion) for the fiscal year ending June 30, 2024, larger than a deficit of NZ$11.07 billion at the government’s budget in May. This is the fifth deficit recorded by the New Zealand government.
The government said the worse-than-expected deficit was due to weaker results from government entities and state-owned enterprises.
New Zealand Finance Minister Nicola Willis said the result underscored the need for the government to continue to bring discipline to public spending and that it was committed to getting the books back in surplus.
“The accounts also show the corrosive impact of low growth and low productivity on the government’s financial performance,” she said in a statement, adding the government was committed to driving economic growth.
Treasury also reported that net core debt was 42.5% of GDP, lower than net core debt of 43.1% forecast in May.
($1 = 1.6488 New Zealand dollars)
(Reporting by Lucy Craymer in Wellington; Editing by Lincoln Feast.)
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