Market Analysis

The New Zealand government has reported a larger-than-expected budget deficit for the 2023-24 fiscal year, citing lower growth as a key factor impacting revenue, according to government accounts released on Thursday.

For the fiscal year ending June 30, 2024, the government recorded a budget deficit of NZ$12.85 billion (US$7.79 billion), exceeding the NZ$11.07 billion deficit projected in the May budget. This marks the fifth consecutive year of deficits for the country.

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

Finance Minister Nicola Willis emphasized the need for continued fiscal discipline and reaffirmed the government’s commitment to returning to a budget surplus.

"The accounts reveal the damaging effects of low growth and productivity on the government's financial outcomes," Willis said, reiterating the government's focus on boosting economic growth.

Treasury also noted that net core debt stood at 42.5% of GDP, slightly below the 43.1% forecast made in May.

Paraphrasing text from "Reuters" all rights reserved by the original author.