New Zealand gov't accounts reflect strong economy amid pandemic

New Zealand government's financial accounts continue to reflect an economy that has performed "better than expected" despite the latest Delta COVID-19 outbreak, Deputy Prime Minister Grant Robertson said on Wednesday.

The Crown accounts for the four months to the end of October factors in the improved starting position for the new financial year. Core Crown tax revenue was 2.5 billion NZ dollars (1.72 billion U.S. dollars) above the Budget 2021 forecast, coming in at 31.8 billion NZ dollars, said Robertson who is also finance minister.

"This was largely driven by better-than-expected corporate profits and more people in work," he said in a statement.

The operating balance before gains and losses (OBEGAL) was a deficit of 7.8 billion NZ dollars, 1.8 billion NZ dollars higher than forecast, as restrictions to contain the pandemic triggered the payment of government financial support.

As a result, core Crown expenses at 41.9 billion NZ dollars were 4.9 billion NZ dollars above forecast due to the payment of wage subsidies and COVID-19 resurgence support payments to protect jobs and livelihoods, he said.

Net core Crown debt stood at 34.2 percent of GDP, below the 36.7 percent forecast.

"This better-than-expected result shows the resilience of the economy as it operates under Alert Level restrictions," Robertson said.

As the country transitions to the new COVID-19 Protection Framework and the fewer restrictions that go with it, the prospects are strong for the economy to support the recovery and deal with long standing challenges such as climate change, housing and child wellbeing, he said. (1 U.S. dollar equals 1.46 New Zealand dollars)