More good news

Once the economy keeps ticking over, it’s very hard to unseat a government.

The Government has recorded a smaller-than-expected budget deficit.

After stripping out investment gains and losses, the Crown recorded an operating deficit of $990 million for the six months to December – some 28 percent less than the Treasury forecast.

In December, Treasury forecast a $570 million deficit for the June 2015 financial year.

But Finance Minister Bill English continues to express confidence that the Government would post a surplus despite the tax take being hurt by a slump in dairy prices and low inflation.

Net debt stood at $66.5 billion, or 28.1 percent of Gross Domestic Product (GDP).

The tax take was unexpectedly about $300M higher. ?That’s always a good sign.