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New Zealand's Tax Revenue Lower Than Estimated

New Zealand's government collected NZ$1.57 billion less tax than forecast in the Pre-election Economic and Fiscal Update in the nine months ended March 2012, the Treasury said on Tuesday.

The Treasury expects this gap to narrow by approximately NZ$700 million before the end of the financial year.

Also, the core crown expenditure for the nine-month period was NZ$1.75 billion or 3.3 percent lower than forecast in October.

The operating deficit before gains and losses was NZ$800 million higher than forecast at NZ$6.13 billion. At March 31, net debt stood at NZ$50.06 billion or 24.5 percent of GDP and gross debt at NZ$75.93 billion or 37.1 percent of GDP.

"These statements are consistent with preliminary Budget forecasts which show a NZ$1 billion deterioration since the Budget Policy Statement in February," Finance Minister Bill English said.

Returning to surplus in 2014-15 will require tight spending control for the foreseeable future, he added.

by RTTNews Staff Writer

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