Is this a sign that the economy is finally picking up again?
Opinion: Bigger tax take puts doubt on Treasury figures
(Dene Mackenzie @ODT): Doom and gloom merchants may have to take a back seat for a month or two after the Government accounts released yesterday showed an improvement in both corporate tax and GST for the 11 months ended May.
The accounts show that core Crown tax revenue in the 11 months was $50.54 billion, up 1.3% on the Budget economic fiscal update figure of $49.87 billion.
More startling was that the tax take in the year to May was 6.7% higher than the $47.4 billion collected in the previous corresponding period – again throwing doubt on the accuracy of Treasury figures.
‘Encouraging’ but not free of uncertaintly…
Finance Minister Bill English has been one of the most conservative commentators on his own figures but was moved yesterday to call the reduction in the operating deficit “encouraging” – with a caveat.
“But the global environment remains uncertain, leading to a number of fluctuations in the tax take from month to month.”
But these gives hope that our economy and employment are on the way up again.
I’ve noticed signs that business is showing signs of cautious confidence and increased investment in progressing too.
Quentin Todd
/ July 7, 2012Cautious optimism is the operative words – we cannot afford to rush ahead, as the property markets in Auckland have done recently, making affordability, yet again, another serious problem. This example should also reflect on consumer confidence and demand – but excessiveness by govt or others is not the current operative mode, should not be, as Bill English has noted: “But the global environment remains uncertain, leading to a number of fluctuations…”. We do have a bit further to go to before we get into a mode of joviality!