NEW ZEALAND FORECASTS 379 MLN DLR BUDGET SURPLUS
The New Zealand government is
forecasting a budget surplus of 379 mln N.Z. Dlrs for the year
ending March 1988, Finance Minister Roger Douglas said in a
statement.
    This compares with a deficit of 1.95 billion dlrs in the
year ending March 1987 and a 1.87 billion dlr deficit a year
earlier.
    Total expenditure is seen at 22.907 billion dlrs against
20.94 billion in the year to end-March 1987. Total revenue is
seen at 23.29 billion dlrs against 18.992 billion.
    The forecast rise in revenue comes partly from the 10 pct
value added goods and services Tax (GST) introduced in October
1986 which is seen bringing in 4.1 billion dlrs against 1.23
billion a year earlier.
    Other indirect taxation is seen rising to 3.1 billion dlrs
from 2.2 billion. Company tax is forecast to bring in 2.39
billion dlrs against 1.22 billion a year earlier while the tax
take from individuals is seen little changed at 10.7 billion
dlrs against 10.9 billion.
    Excluding revenue and expenditure of a capital nature, such
as repayment of loans by state-owned enterprises or revenue
from asset sales, the budget would indicate a deficit of 1.27
billion dlrs, Douglas said
    Using this "financial deficit" method the deficit in the year
to end March 1987 was 1.89 billion dlrs, he said.
    Douglas said using this method, the financial deficit
forecast for 1987/88 measures 2.2 pct of gross domestic product
against 6.9 pct a year earlier.
 REUTER
