[ad_1]
Government accounts are in much better shape than expected, with a deficit of almost half of what was expected.
The Treasury has published the government accounts for the three months to September 30, 2020. They show smaller deficits and lower debt than expected just a few months ago.
The main reason is that a better economy has more people spending and paying taxes, which means more revenue is flowing into the government coffers.
That better economy also means fewer people and businesses need support, so the government is spending less.
READ MORE:
* Election 2020: The impact of Covid-19 for the economy and the Government in figures
* Election 2020: Rivers of red as the Government warns to prepare for a long-term economic shock
* The hotel sector’s Covid-19 lockdown roller coaster continues
The three months through September 30 show that the government received $ 22 billion in tax revenue, $ 2.1 billion more than expected. Of that, it made $ 6.2 billion in GST revenue, $ 1.2 billion more than expected.
The stronger result was due to people spending more money on the national economy, which is performing above expectations.
On the other side of the equation, government spending during those three months was $ 27 billion, $ 1.1 billion less than expected.
ROBERT KITCHEN / Things
Government books are in better shape than expected.
That’s almost all thanks to the Salary Subsidy Plan, which comes in at $ 1 billion below forecast, and fewer companies require your support.
The Government’s deficit (its OBEGAL – operating balance before profit and loss) was $ 3.2 billion, $ 3.3 less than the projected deficit.
The deficit for the full year was expected to be $ 31.7 billion, but this figure could change dramatically if the government maintains its hot streak for the next nine months.
The Crown’s net central debt is currently at $ 94 billion, $ 3.6 billion below the forecast.
