A strong tax take and surprise repayments of the wage subsidy have bolstered the government's finances. Official figures show a deficit of $4.4 billion for the seven months ended January, nearly $3b less than forecast. "These positive variances to forecast reflect an improvement in economic conditions, in particular, stronger domestic spending, higher profitability and better labour market conditions than forecast," the Treasury said. A fall in tobacco consumption meant lower income from customs duties. The government's expenses were about $500 million lower than forecast, in part because of a higher level of wage subsidies being repaid.

Source: Otago Daily Times March 04, 2021 00:33 UTC