Altogether, the Government’s expenses rose by 11.3% over the year, while its revenue only increased by 9.4%.
Its tax take rose a little more than expected at the Budget in May, as high inflation made for strong wage growth.
Treasury noted the impact of “fiscal drag”, or wage increases putting people in higher tax brackets.
Turning to the Government’s debt position, net core Crown debt rose by 13% over the year to $175.5b.
While this was a little below what the Treasury forecast at the May Budget, it still surpassed Willis’ debt target.

'Sobering': Govt books sink further into the red than expected