$7.5 billion surplus

 

The government has just unveiled a $7.5 billion surplus.

 

Treasury announced today that:

 

• The Government’s surplus has increased $2b to $7.5b
• Net Government debt has fallen to 19.2 per cent of GDP, down from 19.9 per cent a year ago
• The total DHB deficit widened to $1 billion
• Total Government revenue increased $6.2 billion to $86.5 billion.

The surplus unveiled today is $4b higher than what was expected in May’s Budget – and $2b higher than the actual surplus unveiled this time last year.

The NZ Herald notes that:

Part of the reason for the $2b increase in the surplus is largely down to a revaluation of New Zealand’s railway. A change in the way the government-owned rail assets were valued contributed to the surplus being $2.6 billion higher than expected.

One-off changes to the way tax was calculated also contributed to the surplus.”

What should they spend it on?

Or is this a bit smoke-and-mirrors?