It may be too early to read too much into the Government's higher than expected deficit.

Latest Treasury figures show the Government has recorded a $7 billion deficit for the ten months to April.

While that's $2.4 billion lower than the deficit from the same period a year ago, it's $1.3 billion dollars higher than Budget forecasts.

New Zealand Initiative Chief Economist Eric Crampton told Mike Hosking we need to see how indicators track in the months ahead before drawing any conclusions.

He says the deficit could change a bit from month to month, due to fluctuations in tax revenue and expenditure.

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