The Interim Financial Statements of the Government of New Zealand for the nine months ended 31 March 2026 were released by the Treasury today. The March results are reported against forecasts based on the Half Year Economic and Fiscal Update 2025 (HYEFU 2025), published on 16 December 2025, and the results for the same period for the previous year.
Overall, the key fiscal indicators for the nine months ended 31 March 2026 were stronger than forecast. The operating balance before gains and losses excluding ACC (OBEGALx) showed a deficit of $7.8 billion, which was $2.1 billion smaller than forecast. Net core Crown debt was $187.8 billion, $3.4 billion lower than forecast, at 42.2% of GDP.
Core Crown tax revenue was $90.8 billion, was (0.4%) lower than forecast, with weaker corporate tax, other direct taxes and customs and excise duties partly offset by stronger source deductions and other indirect taxes.
Core Crown expenses, at $107.8 billion, were $1.3 billion (1.2%) below forecast, reflecting lower spending across a range of functional classifications, including core government services, health, housing and community development, economic and industrial services, and environmental protection.
The OBEGALx deficit was $2.1 billion smaller than forecast, reflecting the core Crown variances noted above and favourable results from Crown entities and State‑Owned Enterprises. The ACC deficit was close to forecast. As a result, the OBEGAL deficit was $8.4 billion, $2.1 billion smaller than the forecast deficit.
The operating balance was a deficit of $2.9 billion, $1.1 billion larger than forecast. The favourable OBEGAL variance was more than offset by weaker‑than‑expected net gains on financial instruments which were $6.2 billion below forecast, driven by the New Zealand Superannuation Fund ($4.1 billion below forecast) and ACC ($1.3 billion below forecast). These were partly offset by stronger‑than‑expected net gains on non‑financial instruments, which were $2.5 billion above forecast.
The core Crown residual cash deficit of $5.0 billion was $2.7 billion smaller than forecast, reflecting stronger‑than‑expected tax receipts, lower-than-forecast operating payments, and lower-than-expected capital cash outflows.
Net core Crown debt at $187.8 billion (42.2% of GDP) was $3.4 billion lower than forecast. This variance was largely driven by the smaller‑than‑forecast core Crown residual cash deficit mentioned above.
Gross debt at $228.2 billion (51.3% of GDP) was close to forecast being $0.2 billion or 0.1% higher than forecast.
Net worth attributable to the Crown at $177.2 billion (39.8% of GDP) was $0.4 billion lower than forecast, reflecting the weaker operating balance partly offset by higher‑than‑expected property, plant and equipment valuation movements.
| Year to date | Full Year | ||||
|---|---|---|---|---|---|
| March 2026 Actual1 $m |
March 2026 HYEFU 2025 Forecast1 $m |
Variance2 HYEFU 2025 $m |
Variance HYEFU 2025 % |
June 2026 HYEFU 2025 Forecast3 $m |
|
| Core Crown tax revenue | 90,839 | 91,190 | (351) | (0.4) | 124,198 |
| Core Crown revenue | 100,001 | 100,511 | (510) | (0.5) | 136,919 |
| Core Crown expenses | 107,815 | 109,123 | 1,308 | 1.2 | 149,047 |
| Core Crown residual cash | (4,965) | (7,629) | 2,664 | 34.9 | (14,802) |
| Net core Crown debt4 | 187,785 | 191,168 | 3,383 | 1.8 | 196,987 |
| as a percentage of GDP | 42.2% | 43.0% | 43.3% | ||
| Gross debt | 228,240 | 228,004 | (237) | (0.1) | 227,225 |
| as a percentage of GDP | 51.3% | 51.3% | 50.0% | ||
| OBEGAL excluding ACC (OBEGALx) | (7,836) | (9,964) | 2,128 | 21.4 | (13,852) |
| OBEGAL | (8,419) | (10,555) | 2,136 | 20.2 | (16,934) |
| Operating balance (excluding minority interests) | (2,917) | (1,795) | (1,122) | (62.5) | (6,547) |
| Net worth attributable to the Crown | 177,189 | 177,587 | (398) | (0.2) | 172,693 |
| as a percentage of GDP | 39.8% | 39.9% | 38.0% | ||
- Using the most recently published GDP (for the year ended 31 December 2025) of $444,821 million (Source: Stats NZ).
- Favourable variances against forecast have a positive sign and unfavourable variances against forecast have a negative sign.
- Using HYEFU 2025 forecast GDP for the year ending 30 June 2026 of $454,497 million (Source: The Treasury).
- Net core Crown debt excludes the NZS Fund and core Crown advances. Net core Crown debt may fluctuate during the year largely reflecting the timing of tax receipts.