New Zealand's already gloomy economic outlook deteriorated on Friday with the release of government accounts showing the operating balance in deficit by 6.2 billion dollars (3.1 billion US).
With the exception of investment losses, there was little difference between the latest results for the six months to December 31 and the previously released October estimates.
But "this difference will widen in subsequent months", Treasury deputy secretary Peter Bushnell said in a statement.
The operating balance was 8.4 billion dollars lower than forecast with tax revenue tracking about one billion dollars below projections and investment losses were 4.9 billion dollars higher than forecast.
The Treasury report said the corporate tax take was down nearly 12 per cent or 564 million dollars lower than forecast.
"We expect that the corporate tax shortfall will persist ... through to the 2009-10 fiscal year" as a result of the global downturn, the report said.
New Zealand sank into recession last year due to the impact of a drought and the end of a property boom, while the global financial crisis has cast more gloom over the economy.
Government forecasts suggest unemployment could rise from 4.2 per cent to as much as 7.5 per cent by next year.
With the exception of investment losses, there was little difference between the latest results for the six months to December 31 and the previously released October estimates.
But "this difference will widen in subsequent months", Treasury deputy secretary Peter Bushnell said in a statement.
The operating balance was 8.4 billion dollars lower than forecast with tax revenue tracking about one billion dollars below projections and investment losses were 4.9 billion dollars higher than forecast.
The Treasury report said the corporate tax take was down nearly 12 per cent or 564 million dollars lower than forecast.
"We expect that the corporate tax shortfall will persist ... through to the 2009-10 fiscal year" as a result of the global downturn, the report said.
New Zealand sank into recession last year due to the impact of a drought and the end of a property boom, while the global financial crisis has cast more gloom over the economy.
Government forecasts suggest unemployment could rise from 4.2 per cent to as much as 7.5 per cent by next year.
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