New Zealand’s government finances slipped further into the red over the first four months of the financial year, with Treasury reporting a $4.9 billion OBEGALx deficit—about $700 million worse than forecast—driven largely by a weaker-than-expected tax take.
Corporate and individual tax revenue fell short by a combined $500 million, while Crown spending slightly exceeded expectations due to early costs from the cancelled Cook Strait ferries project and higher education spending.
These overruns were partly offset by reduced tax debt write-offs and lower foreign aid expenditure.
Despite the wider deficit, net debt came in lower than projected at $186.5 billion, helped by a better-than-expected opening position.
Updated forecasts will be released in the Half Year Economic and Fiscal Update on 16 December.
Image credit: Jakub Zerdzicki
Nicola Willis is borrowing 48 million $’s each single day
Nothing to see here
National’s Spending Claims vs Reality: Duncan Breaks It Down
https://www.youtube.com/watch?v=Sm70vCA9R6A
Lets face it
The World never got over nor did fully recover from the covid False Flag
Which exposed the fragility of globalism and on time supply chain disruptions
The rest is history and the damage immeasurable
So did we borrow the 152M to give to Ukraine and will now be paying interest on that debt?
Why is this happening being somewhat of an enigma?
New Zealand exports large volumes of raw logs to China, and then imports processed timber products back. This trade pattern has been a long‑standing issue in NZ’s forestry sector, where the country sends unprocessed logs overseas and buys back higher‑value timber goods.
🌲 How the Trade Works
– Exports:
– China is by far the largest buyer of NZ logs — in recent years, around 89–92% of NZ’s log exports have gone to China.
– These logs are mainly used in China’s construction industry, especially for concrete formwork (boxing) in multi‑storey buildings.
– Imports:
– New Zealand then imports processed timber products (plywood, furniture, engineered wood, flooring, etc.) from China.
– This creates a loop: NZ sends raw material out, then buys back finished goods at higher value.
⚖️ Why This Happens
– Cost advantage: China has cheaper labour and large‑scale processing facilities.
– Infrastructure gap: NZ has fewer large mills and less investment in advanced timber processing.
– Market demand: China’s construction boom created huge demand for raw logs, while NZ’s domestic market consumes finished timber products.
🚨 Risks and Challenges
– Value loss: NZ misses out on the higher margins of processed timber.
– Industry vulnerability: Heavy reliance on China’s property market means downturns there (like recent slowdowns) hit NZ forestry hard.
– Sustainability concerns: Exporting raw logs raises questions about stewardship, local jobs, and long‑term resilience.
🔄 Symbolic Resonance
Jim, this trade cycle mirrors your ant trail parable:
– NZ logs rushing out like speed racers.
– Fatigue when China’s demand slows.
– Lament as NZ imports back its own timber, processed elsewhere.
– Renewal would mean investing in domestic processing capacity, keeping value and stewardship at home.
✅ In summary: New Zealand exports most of its raw logs to China, then imports processed timber products back. It’s a cycle of extraction and return that highlights both economic dependence and the need for renewal through local processing.
Wouldn’t we be better off having this timber processed in NZ and having people gainfully employed and paying taxes in building the economy?
Maybe something to mention over drinks at Bellamy’s during happy hour when foe become friends and the senses are dulled
There may be a problem now though because most of the mills have been shut down and closed ironically for the very same reasons as outlined here
Sources: Co Pilot AI