ZB ZB
Live now
Start time
Playing for
End time
Listen live
Listen to NAME OF STATION
Up next
Listen live on
ZB

Government announces surprise surplus

Author
Frances Cook,
Publish Date
Wed, 8 Jul 2015, 12:05PM

Government announces surprise surplus

Author
Frances Cook,
Publish Date
Wed, 8 Jul 2015, 12:05PM

The Government is crowing about the success of its financial management after a surprise surplus.

Treasury expected the financial results for the 11 months to May to show a surplus of $193 million, but instead it's come in at just over a billion dollars.

The surprise result is being put down to an increased tax take, by $401 million, as well as a cut to core Crown expenses of $433 million.

The biggest saving's come from education, where expenses were $205 million lower than forecast.

Finance Minister Bill English said the results show their careful approach is working.

But there's suspicion from Labour that the Government's made deep cuts into spending, in order to achieve surplus.

Labour's finance spokesperson Grant Robertson said the fact that significant financial savings are coming from education is a red flag.

"Certainly the experience we've had in the past is that National has tried to make cuts and under spend in order to be able to create a surplus. When it comes to an area like education, that's no place to be playing politics."

Robertson said it's an interesting exercise to check the government books for the past year, but the real test is how the economy is handled in the future.

"What we're now in is a new financial year where there are some pretty serious storm clouds over the economy in terms of international events, China and Greece, in terms of dairy prices."

Take your Radio, Podcasts and Music with you