Finance Minister Nicola Willis warns of economic uncertainty.
The Government's financial results for the first three months of the year have revealed a weaker performance than forecast, with a $4.2 billion deficit and increased net core Crown debt. According to Finance Minister Nicola Willis, these numbers reinforce the importance of driving growth and maintaining careful spending.
The financial statements, released on November 7, show that key fiscal indicators were weaker than expected at Budget in May. The total Crown operating balance before gains and losses (OBEGAL) deficit was $0.7 billion larger than forecast, while net core Crown debt was also $0.7 billion higher than anticipated at $177.6 billion.
The Finance Minister attributes the need for fiscal restraint to the previous government's financial mismanagement, which increased net debt by $118 billion in just six years. Willis is determined to address this issue by prioritizing spending that benefits New Zealanders and creating an environment conducive to business growth.
New forecasts will be released on December 17 alongside the Half Year Economic and Fiscal Update and Budget Policy Statement, providing a clearer picture of the country's economic outlook.