Continuing gloom on the global economic front is concerning, but closer to home Trans Tasman points out some better news:
NZers haven’t had much to celebrate in the way of economic news lately, but this week there was some cheer on hand. The deficit in the Crown accounts for the 10 months to April was $1.4bn lower than forecast, largely as a result of higher-than-expected tax, and lower-than-expected core Crown expenses. It suggests the Govt is on track for the $8.5bn deficit signalled in the Budget last month, rather than the $10bn-$12bn deficit which was on the cards as recently as February.
Higher than expected tax indicates businesses doing better which, combined with lower government spending, is an important ingredient in our economic recovery.
Homepaddock 
The forecast was wrong. Surprise!
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Couldn’t disagree more Ele. In his zero budget English is still spending more dollars than in his previous budget, and they’re spending more dollars than, I believe, the last year of the last Labour government. Where’s the lower government spending? Even the spending cap they’re talking up is doublespeak, as it merely seeks to cap future ‘increases’ to population growth and inflation, and as they control inflation, well … Plus National are still borrowing what, about $300 million a week?
If they call this limited government, which theoretically National profess belief in, I’d hate to see their brand of ‘big’.
Also, there will be more tax receipts from the dairy sector, yes, though they will fall again next year, but outside that sector I don’t know of any other sector that could be said to be getting on better. I suspect the increased tax take has as much to do with the switch to GST of 15% bringing in more, plus all the other indirect and excise taxes that have been raised which are so numerous it’s impossible to track, plus the win IRD had against the banks. So, the increased tax take just means a higher level of theft.
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