Govt surplus sitting $910m higher than forecast last December - Grant Robertson

The Finance Minister has announced a "slightly better-than-expected" run-up to the government's first Budget, with the surplus sitting $910 million higher than forecast by Treasury last December. 

Grant Robertson. Source: 1 NEWS

Grant Robertson said in a statement today: "We came into government six months ago with different priorities and fresh ideas for how to make our economy more productive and shift the drivers of growth away from population increase and housing speculation.

"The Treasury's financial statements to the end of March show that corporate and income tax has been stronger-than-expected in recent months."

He said that was an indication that business profits were higher, along with a continuation of "strong" employment growth.

"This matches figures last week showing the unemployment rate is now at its lowest level since December 2008. GST has been buoyed by residential investment and consumption."

The Finance Minister said the extra $910m for the surplus reflected "the Coalition Government’s prudent fiscal management and show we are keeping to the Budget Responsibility Rules", which require governments to run a surplus, drop net debt to 20 per cent GDP in five years, and to spend responsibly.