New Zealand’s Financial Statements Show Stronger-than-Expected Results

Minister Willis emphasized that while these results are encouraging, the Government remains committed to addressing fiscal challenges through prudent financial management.

The latest interim Financial Statements of the Government of New Zealand indicate a stronger-than-expected fiscal performance, according to Finance Minister Nicola Willis.

Treasury released the Financial Statements for the seven months ending 31 January 2025, which demonstrate improvements across key economic indicators compared to projections made in the Half Year Economic and Fiscal Update.

Key highlights from the report include:

• The Operating Balance before Gains and Losses (OBEGALx) deficit was $1.4 billion smaller than forecast, signaling better fiscal management and revenue generation.
• Core Crown tax revenue outperformed expectations by $600 million, reflecting a stronger revenue base.
• Core Crown expenses were $600 million lower than anticipated, primarily due to timing differences in expenditure.
• Net core Crown debt tracked closely to forecasts, landing $66 million below expectations.
• Over the seven-month period, Core Crown expenses increased by 2% compared to the same period in the previous year, a significant reduction from the 9.7% increase recorded in the prior year’s equivalent period.

Minister Willis emphasized that while these results are encouraging, the Government remains committed to addressing fiscal challenges through prudent financial management.

“The fiscal fix-up job is underway, but it won’t happen overnight. Rectifying the state of the books underpins the Government’s push to get the country back on track,” she stated.

A more stable financial position will support economic growth, foster job creation, and ensure the sustainability of public services that New Zealanders rely on. The Government continues its focus on long-term economic health and responsible fiscal stewardship to maintain progress in achieving a balanced budget.