The New Zealand's Treasury has said that the fiscal situation of the nation worsened during October and the reason behind this was the lower than expected earnings from the tax sides.

In the accounting side, the operating balance excluding gains and losses (OBEGAL) for four months ending October showed a deficit of NZ$4.4 billion ($3.4 billion). As compared to forecasts it was 79 per cent lesser.

The department said that the major push came from the company tax revenue that went down by as much as 28 per cent. Slower-than-projected economic recovery and even smaller spending by the consumers, led to this downfall.

When compared to the overall tax position, the figures were NZ$1.1 billion lower. For the net operating balance the deficit was at NZ$2.2 billion or 25.6 per cent lower than the forecast.

Meanwhile, net government debt was at NZ$34.75 billion which is 18.4 per cent lower than the GDP and 17.8 per cent lesser than forecast.

Cash position of the state, which takes into account all the spending and income, there was a deficit of NZ$7.45 billion.