Positive signs for Crown accounts 

There are signs of improvement in the government's books, although lower returns from provisional tax suggest businesses are suffering.

Treasury figures for the 11 months to the end of May show a better than expected operating deficit of $7.2 billion - $1.2 billion lower than forecast.

Treasury says this is mostly due to better investment gains in the New Zealand Super Fund and ACC.

The New Zealand Super Fund  - to which the government has announced it is suspending contributions - gained $1.2 billion, and ACC $500 million.

While tax revenue was on forecast, corporate tax receipts were down $400 million on predictions, driven by lower than expected provisional tax payments.

Treasury says this suggests business profitability is weaker than expected.

Despite recent reports that the dole queue is growing by 1,000 people each week, Treasury says it is yet to see any significant impact from rising benefit payments, with Core Crown expenditure down $400 million.

Gross debt is 22.8% of gross domestic product, around 1% lower than forecast.

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