Careful stewardship of spending pays dividends

The latest Crown accounts reinforce the benefits of the Government’s careful stewardship of its finances, Finance Minister Bill English says.

The Treasury reports that the Government recorded an OBEGAL surplus of $1.2 billion in the first eleven months of the financial year that ended last week. That compares with a $1.1 billion deficit in the corresponding period last year.

The 11-month result is nearly $1 billion better than forecast in the Budget.

“The Government has a commitment to New Zealanders to prudently manage taxpayers’ money and is working hard to improve the quality and effectiveness of public spending,” Mr English says.

“That is why we set ambitious targets for departments to deliver real, measurable benefits to New Zealanders. That is why we monitor performance against targets and publish the results – steps that assist to promote accountability and encourage us to do better.

“And we have not been afraid to invite feedback from the community for ideas on how we might try different approaches to more effectively deliver the services New Zealanders value and fund with their taxes.

“These efforts are paying dividends through improved results and improving finances.

“There is always volatility in the monthly Crown accounts and we won’t know for some time if there will be a full-year surplus in 2014/15.  What is important is that these results indicate the Government is on track to anchor Crown debt levels at a low, sustainable level,” Mr English said.

The audited financial statements for the full financial year are due in October.