Better than expected but still not good

The fiscal rectitude imposed on government departments is one of the major contributors to the fiscal deficit being lower than forecast.

Finance Minister Bill English said:

“Despite underlying tax revenue coming in almost $700 million below forecast, the operating deficit before gains and losses was lower than the forecast $5.1 billion deficit – due ongoing control over spending and some one-off factors.

Lower than forecast isn’t low enough, but it’s a long way better than it would have been had the government not been resolute about cutting the fat from the public service and demanding better value for the money it spends.

Lower tax revenue than expected is a reflection of the recession and a large part of the shortfall will have been from farmers.

Farm accounts for the last financial year are generally pretty gloomy.

The improved milk payout ought to make this year’s books brighter for dairy farmers. But sheep and beef returns are still unimpressive, crop prices haven’t been spectacular and the drought in the North Island and dry conditions further south will be taking its toll too.

4 Responses to Better than expected but still not good

  1. gravedodger says:

    sheep and beef returns unimpressive !!
    Methinks it is a little worse than that and the new tax under the ETS is on the horizon. I hope fervently the grass roots of the party are bringing relentless pressure on Mr Key and more particularly Mr Ntck Smith to at least delay the ETS Tax as what is appearing more and more discredited science of AGW is being accepted by nearly all our trading partners outside of Europe. This could be the straw that will totally cripple large sections of our primarary industry.
    I am not as well informed on the science of economics as I would like, but traveling round rural NZ I see signs that the “recovery from recession” that the stats indicate is not what is apparent in the rural community.

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  2. Adolf Fiinkensein says:

    Funny thing you know. The sheep and beef farmers I talk to are not moaning. They are getting on with the job of making profits. Anyone who can’t turn a dollar when lamb prices are running at $80 should sell up and enter local government politics.

    However, I entirely agree with grave. This ETS nonsense has to stop. It is THE ONE issue which can lead to defeat the polls for National and it appears not enough NZers are telling Mr Key. Roy Morgan started to give him the message yesterday (down two points)and I fervently pray that the next poll in two weeks continues the downward trend. Only then, might he start to get the message and sack his damned fool ‘science’ adviser.

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  3. Adolf Fiinkensein says:

    Woops, that should have been (down 2.5 points)

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  4. adam2314 says:

    Sitting in a MAF building today waiting for the public servant to start.

    Had time to read some of the literature..

    Found one with details of monies from a trust..

    Almost a million to study the gentalia of male moths..

    Almost half a million to study why Liverpool became a trading port..

    OK. As said the monies came from a trust..

    But WTF ???..

    The public servant arrived and cut short my reading thank goodness..
    I was on the way for a heart attack..

    Like

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