Government Books Improving, Your Books Not Consulted

The Government’s books are looking healthier, with corporate tax revenue coming in $700 million ahead of forecast. Ministers say this reflects improving business profitability and a strengthening economy, and they are technically correct, which is the best kind of correct available before an election.

The improvement is currently concentrated in the parts of the economy that file corporate tax returns. Households have been advised that the recovery is underway and that they should expect to feel it at some point, in the same way one is advised that a parcel is in transit.

Until then, the $700 million stands as proof that somebody in New Zealand is doing well. The Government has promised to keep announcing this until it becomes generally true.