Crown accounts looking strong
Treasury have released:
The operating balance before gains and losses (OBEGAL) was a surplus of $1,410 million, compared to a forecast surplus of $498 million. This favourable variance of $912 million was largely due to higher than forecast core Crown tax revenue and lower than forecast core Crown expenses.
Both good news.
Core Crown tax revenue was $462 million (1.0%) higher than forecast for the eight months ended 28 February 2017. Corporate tax was the largest driver of this favourable result with revenue being $551 million ahead of forecast. This increase was across both provisional and terminal tax, indicating that profits in the 2016 tax year were higher than forecast and that this has continued into the 2017 tax year.
A good sign of economic strength.