New Zealand budget deficit up as tax falls

New Zealand tax revenue fell below forecast in the second half of last year, leaving the government with an operating deficit of 1.8 billion NZ dollars (1. 49 billion U.S. dollars), which was 380 million NZ dollars (315.58 million U.S. dollars) worse than expected, the New Zealand Treasury announced Friday.

"At this stage, it is difficult to determine how much of the lower than forecast tax is temporary versus permanent, but we expect this to become clearer over the next few months," said a statement from the Treasury on the release of the government financial statements for the six months ending December.

Finance Minister Bill English said government spending remained under control with the accounts on track to a surplus in 2014-2015.

Core government revenue at 32.1 billion NZ dollars (26.65 billion U.S. dollars) in the six months to December was around 80 million NZ dollars (66.43 million U.S. dollars) lower than Budget forecasts in May last year, English said in a statement.