The Government's taxation revenue continues to lag the Treasury's forecasts, although when compared with last year the $32.5 billion received in the six months ended December is ahead of the previous corresponding period.
The Treasury had forecast the Government would receive $32.48 billion in tax in the six months but the actual amount received was 14% below forecast.
However, the $32.5billion was more than a $1 billion actually achieved in the six months ended December 2014.
In notes released yesterday with the Crown accounts, the Treasury said core Crown revenue was lower than forecast largely due to core Crown interest revenue being $204 million lower than forecast.
While overall core Crown tax revenue was close to forecast, there were two tax types which had large offsetting effects.
Corporate tax of $246million was 5.9% below forecast, mainly as a result of lower-than-forecast provisional tax.
Source deductions were $150million, or 1.1%, above forecast.
Labour market data released for the December quarter showed total labour income growth was stronger than forecast in the quarter.
"This suggests some of this favourable variance may be permanent, and presented upside risk to the full-year result for this tax type,'' the Treasury said.
The Crown accounts remain stubbornly in the red with an operating balance before gains and losses (obegal) deficit of $889million for the December half-year compared with a forecast of a $797million deficit.
The accounts were briefly in surplus last year.
The operating balance, which takes into account the Government's gains and losses on investments and on ACC liabilities, was a deficit of nearly $2 billion compared with a forecast of a $1.27 billion deficit, or a 55.7% miss on the forecasts.
In the pcp, the operating balance was a deficit of $316million and the obegal was a deficit of $990 million.
Finance Minister Bill English said in a statement the accounts remained broadly in line with forecasts and showed spending remained under control.
"Although revenue is slightly under forecast, we are keeping a tight rein on what we can control - our spending. We'll have to wait until the final accounts are published in October before we see the actual obegal result. But now we are back near balance, we will not react to small negative or small positive surplus forecasts.''
