Colin Ambler/cvnznews.com
New Zealand’s public finances have taken a welcome turn, with the Government confirming the country is closing the financial year in far better shape than expected — a shift Finance Minister Nicola Willis says reflects “real economic momentum” returning after a turbulent period.
Fresh Treasury figures show the deficit for the 11 months to May came in $3 billion smaller than forecast, driven by stronger tax revenue and lower‑than‑expected spending across several core sectors. Company tax and provisional tax payments were notably higher, lifting the total tax take to nearly $115 billion — about $900 million above Budget expectations.
Willis says the numbers are “encouraging” and point to an economy that is quietly rebuilding strength despite global headwinds. “All the indications are that the conflict in the Middle East slowed growth in the second quarter, but the economy is already regaining the momentum it had developed before the conflict began.”
Falling oil prices, easing inflation expectations, and solid export and tourism earnings have helped steady the ship. Additional revenue from state‑owned enterprises and the emissions trading scheme added another $1.7b, while government spending came in $900m lower than planned.
Net debt also tracked slightly below forecast at $186b, sitting at 41.3 percent of GDP — a small but symbolic shift in the right direction.
Final accounts for the June year will be released in October, and Willis expects the deficit to land well below the nearly $12b projected in the Budget. She says the improvement shows that “fixing the basics” is working, and that rebuilding financial resilience is essential — a point echoed by the International Monetary Fund in its latest report.
For now, the story is simple: after a tough stretch, New Zealand’s economic momentum is quietly returning.
