The government has opened up its accounts for the six months ending December, with finance minister Grant Robertson saying they’re looking in good shape.
The technical sounding “Operating Balance before Gains and Losses” – or OBEGAL – recorded a deficit of $2.8 billion, which Robertson said was $39 million above what had been forecast in the half yearly update in December 2022 and $5.2 billion lower than for the same period a year ago.
According to Robertson, it shows the government will be well prepared for the clean-up after Cyclone Gabrielle – but the full cost of the recovery won’t be known for some time.
“The extreme weather that New Zealand has experienced recently is putting families and businesses under even more pressure, with some losing their homes and livelihoods. We are committed to continuing to support them through these difficult times,” he said.
“New Zealand is in a strong financial position to do so thanks to the government’s careful and prudent management of the books. The impacts of flooding in Auckland in late January and now Cyclone Gabrielle have yet to be fully known and the Treasury is currently accessing the economic and fiscal impact.”
Net debt was 21.6% of GDP, higher than the forecast of 21.3%.
