New Zealand Budget Deficit Report

WELLINGTON (Reuters) – The New Zealand government reported a larger-than-expected budget deficit for the 2023-24 year, as lower growth hampered government revenue, according to accounts released Thursday.

The government recorded a budget deficit of NZ$12.85 billion ($7.79 billion) for the fiscal year ending June 30, 2024, surpassing the deficit of NZ$11.07 billion projected in May. This marks the fifth deficit recorded by the New Zealand government.

The government attributed the worse-than-expected deficit to weaker outcomes from government entities and state-owned enterprises.

New Zealand Finance Minister Nicola Willis emphasized the need for discipline in public spending, stating the government's commitment to restoring surplus in the accounts.

Willis remarked, "The accounts also show the corrosive impact of low growth and low productivity on the government’s financial performance," highlighting the government's dedication to fostering economic growth.

Additionally, Treasury reported that net core debt stands at 42.5% of GDP, a decrease from the net core debt of 43.1% forecasted in May.

($1 = 1.6488 New Zealand dollars)